This content is sponsored by the Montgomery County Department of Transportation.
Tired of your commute in traffic? There’s an easy and affordable way to improve your commute using alternate transportation and helping the environment.
FareShare is a program offered by the Montgomery County Department of Transportation that encourages the use of transit and vanpooling by offering a subsidy matching program through employers. Employers are incentivized to use these benefits, which are geared toward reducing traffic congestion and helping with the recruitment and retention of employees.
Providing employer-paid transit benefits and allowing employees to receive their benefits as pre-tax payroll deduction is a good way to persuade employees to switch from driving to work to using transit and vanpooling, according to recent research.
The program encourages employers to start a commuter benefits program or to enhance their existing program by increasing the amount of transit subsidy offered to employees to attract more participants to sign up.
As of Jan. 1, 2020, employers can offer any amount up to a maximum of $270 per month – which is $3,240 per year – to be tax free. The County will contribute 80 percent per employee per month providing that the employer contributes at least $25 per employee each month. A maximum of $40,000 is available a year.
For example, if an employer offers a transit benefit of $125 per employee each month. The County will pay 80 percent or $100 per employee each month. So, the employer only pays $25 per employee each month.
Employees enrolled in the program can choose for this amount to be a direct benefit for use on transit or vanpools. In addition, employers are eligible for a state tax credit for 50 percent of their contribution, to a maximum of $100 per employee per month.
If the employer does not yet offer a transit/vanpool benefit, FareShare will help them set up a commuter benefits program. FareShare staff will visit your office to help your business set up a commuting benefits program that fits your organization’s needs.
Ultimately, the FareShare Program is designed for employers to help pay all or part of their employees’ transit and vanpool commuting expenses and getting a tax credit for their business. This allows for both employers and employees to help reduce pollution and traffic congestion.
To learn more about the program, visit https://www.montgomerycountymd.gov/dot-dir/commuter/fareshare/index.html or call 240-773-2989.
