Use of Transit or Commuter Benefits with the SmartLink Card
Commuter Benefits are provided by employers through Commuter Benefits providers in several forms.
Currently PATH fare products may be purchased using:
- Commuter Benefits prepaid debit Cards
- Commuter Benefits monthly direct electronic load
Commuter Benefits Prepaid Debit Cards
Commuter Benefits Prepaid Debit cards can be used on the SmartLinkSM website to:
- Purchase SmartLinkSM Cards
- Add trips/passes through One-Time Replenishment service
Commuter Benefits Prepaid Debit cards cannot be used to set up Automatic Replenishment for SmartLinkSM Cards.
Commuter Benefits prepaid debit cards may also be used at the PATH vending machines to add trips/passes to your SmartLink Card. If you do not have a SmartLinkSM Card, you can purchase a SmartLinkSM Card, without any trips ($5 cash), at the designated SmartLink Card dispensers at the following stations: Newark, World Trade Center, Journal Square, Exchange Place, Newport, 33rd and Hoboken. After obtaining a SmartLinkSM Card, you can proceed to any vending machine to add trips/passes to your SmartLink Card using your Commuter Benefits prepaid debit cards.
Commuter Benefit Monthly Direct Electronic Load
With this efficient and time-saving option, employers have transit benefits automatically loaded onto the SmartLink cards of their employees, in the form of trips or a 30-Day Unlimited Pass. Products become available for use on the SmartLink Card
by the 1st day of the benefit month.
Commuter Benefits Vouchers
Commuter Benefits Vouchers are no longer accepted for payment of PATH products as of 1/31/16.
What Do You Need to Do?
Check with your employer to see if they already offer a commuter tax benefit program. You may want to start with the Benefits Department, your payroll contact or Human Resources Department. They will help you figure out if the benefit is already offered to employees. Keep in mind: the only way to access pre-tax salary is through your employer. Once you take home your paycheck, you have paid income tax on that salary. The pre-tax transit benefit is not a year-end deduction; it consists of payroll deductions throughout the year.
What Do Employers Need to Do?
To take advantage of these tax savings, your employer needs to opt-in to one of the programs offered by a third-party provider. In addition to special third-party commuter benefit programs, payroll service companies may offer a transit pre-tax benefit option. A common name for the benefit is "commuter tax benefit."
What is the pre-tax transit benefit?
The Internal Revenue allows employees to use pre-tax salary towards their mass transit commuting costs.
How much pre-tax salary can be used?
Please refer to current IRS forms and publications. Pre-tax transit is under IRS code, Section 132(f), Qualified Transportation Fringe. It is not part of Section 125.
How does this save money?
Employees pay no federal income tax on the amount you set aside pre-tax for your mass transit commute, up to caps pre-determined by the IRS.
Is the pre-tax benefit the same as a flexible spending plan
There are no eligibility requirements, enrollment timeframes nor reporting required. It may be offered to union, non-union, full time as well as part time employees. Pre-tax transit is under IRS code, Section 132(f), Qualified Transportation Fringe. It is not part of Section 125.
Do you recommend a program?
PATH cannot recommend one program over another.