background

Metro Perk

With Metro Perk, employers can offer employees a pre‑tax benefit for transit use. Employers reduce payroll taxes, and employees reduce their taxable income, saving approximately 30%.

  1. Employees indicate that they would like to purchase a MetGo monthly bus pass. This allows the cost of the pass to be deducted from their paycheck pretax and should be submitted to the company’s Human Resources or Payroll department, or whichever department manages the benefit.
  2. Employers deduct the cost of the passes from participating employees’ paychecks and order the passes through their MetGo corporate account on a monthly basis.
  3. The passes are purchased pretax, allowing employees to receive the full pretax benefit.
  4. Using their MetGo account, employers can reload the passes for participating employees each month.
The savings add up
For employees:

A $75 monthly pass as a real cost of $53 for people in a 15% tax bracket. People in a higher tax bracket could save even more. The full $75 is taken out of a paycheck, but before taxes. By avoiding tax on that money, most Metro riders will save about 30%.

For employers:

Every $1,000 reduction in payroll saves $76 in FICA, annually. (Savings dependent on payroll tax rates and wage base.) Social Security and other savings may also apply.

For more information contact:

NFTA-Metro Cash Management Office

Attn: Metro Perk

181 Ellicott Street Buffalo, NY 14203

phone: (716) 855-7202 | fax: (716) 855-7311 | TTY/Relay 711 or (800) 662-1220