All aboard! The IRS boosted the fringe benefit limit for transit and parking to $325 per month in 2025, up from $315, to account for inflation and increased commuting costs. As a quick refresher, Jawnt broke down what this means for you and your employees as you move into the new year.

For Employees: More Money in Your Pocket

For employees, the benefit limit increase means converting commuting expenses into savings on taxes. By using pre-tax income for your commute expenses, you have lower taxable income. Lower taxable income means more money in your pocket. And with the limit now at $325, it's like an extra boost for your commuting budget.

For Employers: Less in Payroll Taxes

To the admins out there–supporting commuter benefits isn't just a nice thing to do. It's also a smart move. Lower taxable income for your team translates to less spent on payroll taxes. It's a win-win situation! Plus, happy employees make for a positive workplace.

What’s Next?

So, how do we make this happen? Employers, make sure to chat with your commuter benefits provider and ensure you are in compliance with the new $325 limit. Already working with Jawnt? Your account manager will have already reached out to help get the relevant changes for your payroll in place. 💫

Let's Ride Together in 2025!

The IRS increasing the benefit limit means our daily travels are easier on the wallet. This increase in the fringe benefit limit is a nod to the fact that commuting can be pricey – and who doesn't want to save a little extra? Whether you're an employee looking to boost your budget or an employer ready to offer financial perks, let's ride into 2025 together!

Happy commuting, everyone!

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Want to learn more about how Jawnt can help employees and organizations save money on their commute? Get in touch with our team. 

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