SAN MATEO, Calif., Dec. 21, 2015 (GLOBE NEWSWIRE) -- WageWorks, Inc (NYSE: WAGE), a leader in administering Consumer-Directed Benefits including transit and parking benefit programs, applauds Congress’ passing of the Omnibus Appropriations and Tax Extender Package, which will provide permanent parity between transit and parking benefit cap levels assisting millions of employees who commute to work using public transportation. President Obama signed the bill into law on Friday, December 18, 2015.
"WageWorks is pleased to see Congress deliver permanent parity between employer-provided parking and transit benefits,” said Dan Neuburger, president of Commuter Services at WageWorks. "Public transit commuters across the country, and particularly those in the suburbs of high cost metro areas like New York City, will save significantly more money. This is a huge win for commuters.”
Under the new provision, the monthly IRS cap on pre-tax commuter benefit deductions for 2016 will increase for both drivers and public transportation commuters from $250 and $130 respectively, to $255 for both modes of transportation.
In addition to saving commuters more money on their taxes, this legislation will help employers of all sizes save more money on payroll taxes. It will also reduce traffic congestion and improve air quality through reduced carbon emissions. "We greatly appreciate the leadership of those who made this happen including Senators Charles Schumer and Bob Menendez, and Congressmen Peter King and Earl Blumenauer. Other Members of Congress who played an important role were Representatives Barbara Comstock, Joe Crowley, Robert Dold, Daniel Lipinsky, Paul Tonko, and Randy Hultgren. Commuting Americans owe them all a debt of gratitude," added Neuburger.
Major U.S. cities such as New York City, San Francisco and Washington, D.C. have recognized the importance of establishing pre-tax commuter benefits ordinances to meet the needs of their ever-expanding populations. The new, permanently higher benefit caps will increase the positive impact of such local ordinances as more people are expected to sign up for tax savings and take advantage of public transportation.
WageWorks will continue to lead efforts on behalf of commuting Americans for additional enhancements to commuter benefit programs such as broadening eligibility requirements and improving the flexibility of the bicycle benefit.
WageWorks (NYSE: WAGE) is a leader in administering Consumer-Directed Benefits (CDBs), which empower employees to save money on taxes while also providing corporate tax advantages for employers. WageWorks is solely dedicated to administering CDBs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, COBRA, and other employee benefits. WageWorks makes it easier to understand and take advantage of Consumer-Directed Benefits for approximately 45,000 employers and over 4 million people. WageWorks is headquartered in San Mateo, California, with offices in major locations throughout the United States. For more information, visit www.wageworks.com.
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