SAN MATEO, Calif.
June 27, 2012
/PRNewswire/ -- WageWorks Inc. (NYSE: WAGE), a leading on-demand provider of tax-advantaged programs for consumer-directed health, commuter and other employee spending account benefits and proud provider of TransitChek® commuter benefits, today commemorated the 25
anniversary of TransitChek, the nation's first commuter benefits program.
Originally launched in 1987 as a
tax-free monthly fringe benefit, the employer-provided, federal tax benefit has since expanded and evolved.
According to the 2010 TransitCenter, Inc. Commuter Benefit Impact Survey, the commuter benefit is one of the "Core Four" most commonly offered benefits (health, retirement, disability and commuter) by employers. Based on industry figures, the benefit has been adopted by more than 10,000 employers and is used by an estimated 2.7 million employees nationwide. The growing popularity of the benefit has been driven primarily by the substantial savings the program yields for both participants and their employers. IRS allowable amounts for transit and parking are exempt from withholding and payment of payroll taxes by the employer. These benefit amounts are also excluded from the employee's gross income for federal tax purposes and from state and local taxes in most states.
"The providers of TransitChek have spent the last 25 years maximizing savings for commuters," said
, President of WageWorks Commuter Services. "The commuter benefit has evolved immensely in the past quarter century and become an invaluable cost saving tool for millions of Americans and their employers. Each day, more employers are recognizing the value and importance of commuter benefits as part of a portfolio of employee spending account benefits, and we have continued to make it easier for companies to increase employee participation by integrating technology such as mobile access," he added.
A Timeline of Commuting Innovation
From 1987 to today, TransitChek has introduced a wave of innovations that has driven the growth of commuter benefits and made it more convenient to participate.