Use New Transit Benefit as a Retention Tactic

Help retain workers with transportation problems with the new federally funded mass-transit perk. Here's how it works: You'll be able to give workers up to $65 a month in tax-free mass-transit benefits instead of wages. Previously, you could only offer transit vouchers in lieu of salary increases. The amount will gradually increase from $65 to $100 by 2002. Employees pay no income tax on the amount, while your company pays no payroll taxes on it. The new tax treatment took effect January 1, 1999.

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