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Overview
Save on Your Daily Commute
Tired of spending so much money just to get to work? With a Commuter Spending Account (CSA), you use pre-tax dollars to pay for public transportation and parking expenses that you incur getting to and from work.
Two types of commuter accounts are available, and you can enroll in one or both types of accounts:
- Transit Account: covers mass transportation or vanpooling expenses, such as bus or subway fare.
- Parking Account: covers parking expenses for any type of vehicle you use for your drive to and from work.
How does a Commuter Spending Account save me money?
A Commuter Spending Account lets you set money aside for eligible commuting expenses before your employer deducts taxes from your paycheck. This means the amount of income your taxes are based on will be lower, meaning you pay less tax.
In the example below, an employee with an annual pay of $40,000 contributes $230 a month ($2,760 a year) into her CSA. As a result, her taxable income goes down to $37,240, which saves her $1,104 in taxes. In other words, she received a $1,104 discount on the expenses she paid from her CSA – saving nearly 40% on expenses she would have had to pay anyway.
| Annual Tax Savings Example* |
With a CSA |
Without a CSA |
| If your taxable income is: |
$40,000 |
$40,000 |
| And you deposit this annual amount into a CSA: |
-$2,760 |
-$0 |
| Your taxable income is now: |
$37,240 |
$40,000 |
| Subtract Federal and Social Security taxes: |
-$14,896 |
-$16,000 |
| If you spend after-tax dollars for eligible expenses: |
-$0 |
-2,760 |
| Your real spendable income is: |
$22,344 |
$21,240 |
| Your tax savings with a CSA is: |
$1,104.00 |
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* Sample tax savings for a single taxpayer with no dependents. Actual savings will vary based on your individual tax situation. Please consult a tax professional for more information on the tax implications of a CSA.
Use the Commuter Calculator to help you determine how a CSA will save you money, based on your individual situation.
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How does CSA work?
Opening and using a CSA is easy. As your plan administrator, SHPS makes CSA participation as simple as possible:
Step 1: Login to your account at MySHPS.com.
Step 2: Click "Commuter Benefits".
Step 3: Choose “Transit Order” or “Parking Order” to place your order.
Step 4: Follow the instructions to complete your order.
- If you ordered a transit pass or a voucher, you should receive it before the end of the month.
- If you elected parking with a “Direct Pay” arrangement, payment will automatically be sent to your parking provider.
- If you chose to have funds added to your SHPS/Carewise Card, these funds will be available a few days before the first of the month.
- If you elected parking reimbursement, you may file a claim as soon as you incur your monthly parking expense.
Step 5: Utilize the Transit and/or Parking that you have purchased, or submit a request for reimbursement if applicable.
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