Fair, and 73 ° F.
Honolulu Commuter Choice TAX SAVINGS
The Honolulu Commuter Choice Program provides tax savings to both employees and employers. As a fringe benefit program, these benefits are not considered taxable income to the employee but are a tax-deductible expense for the employer. The benefit is a fully deductible business expense at both the federal and state level, which means an employer pays less than the full face value. When the benefits are purchased with employees's pre-tax payroll deduction, employees save up to 40 percent of the cost of a bus pass by avoiding federal, state, Social Security and Medicare taxes. Employers save money from reduced payroll taxes (comprised of employer-paid FICA, Medicare, unemployment, worker's compensation, disability pension, or other payroll driven costs), which amount to approximately 10 percent. TheBus has developed a program that is easy to administer and the recordkeeping is simple.