Metrochek is a farecard voucher that employers can provide to their employees as a
transit commuter benefit. The benefit can be used to cover the cost of commuting to work
on public transit or certain qualifying vanpools. The monthly Metrochek benefit can be any
amount the employer chooses to provide, although a maximum of $65 per month is allowable
tax-free or pre-tax to employees. The Metrochek transit benefit is treated just like many
other commonly available fringe benefits such as employer-provided health insurance.
Direct benefit: An employer can provide an employee with a direct Metrochek benefit of up to $65
maximum per month. It’s tax-free to the employee, and most private sector employers
can write-off the cost of providing Metrochek as an ordinary business expense, saving part
of the cost of providing the benefit.
Salary deduction: An employer can provide an employee with the Metrochek benefit, up to $65 maximum per
month, with the cost of the Metrocheks deducted by the employer from the employee’s
salary, pre-tax. Do not make Metrochek part of a cafeteria plan.
Customized combination: An employer can provide an employee with the Metrochek benefit, up to $65 per month
tax-free to the employee, if it’s in lieu of, or in combination with a salary
increase, bonus or incentive pay.
Advantages and benefits
Tax-free benefits
Many employers reap a 2-to-1 benefit. (Specific tax rules may vary according to state
and type of enterprise.)
