Qualified transportation fringe benefits allow employees and employers to use pre-tax dollars towards commuting expenses. In general, these benefits are completely optional and employers are not required to offer them. However, some cities with high commuter populations (e.g. New York City, San Francisco, Washington, D.C.) have laws that make it mandatory for employers to offer the benefit.
The tax law defines qualified transportation fringe benefits as:
Qualified transportation fringe benefits allow employees and employers to use pre-tax dollars towards commuting expenses. In general, these benefits are completely optional and employers are not required to offer them. However, some cities with high commuter populations (e.g. New York City, San Francisco, Washington, D.C.) have laws that make it mandatory for employers to offer the benefit.
The tax law defines qualified transportation fringe benefits as: