From commuter benefit deductions to automatic tax calculations and filings, OnPay keeps everything in one simple platform. Easily manage transit and parking elections, streamline payroll, and let us handle the heavy lifting – so reporting stays accurate without the extra effort.
With OnPay, you can offer pre-tax transit and vanpool benefits for trains, buses, and subways — as well as parking benefits for meters, garages, and lots. Everything stays compliant and hassle-free while giving employees more ways to cover the cost of getting to work. You can also support flexible commuting options, like carpool programs, toll reimbursements, and ride-sharing incentives.
— Olympic Peninsula Community Clinic
Less admin. More time for what matters. OnPay brings payroll, HR, and commuter benefits together in one platform. Pay your team in a few clicks, let us take care of the calculations and taxes (accuracy guaranteed), and simplify onboarding with built-in HR and integrated benefits.
OnPay’s payroll software automates tasks, reduces errors, and saves you time — all starting at $49/month + $6 per employee:
Try OnPay out for yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.
The IRS will allow you to withhold up to $340 per month of each employees’ pre-tax income to cover commuter benefits in 2026 (up from $325 in 2025). Depending on where your business is located, this may or may not cover the expenses associated with your employees’ commutes. In some cities, parking can cost double this maximum. You have the option to subsidize the difference, but it’s completely up to you. Learn more about commuter benefits
Offering commuter benefits could help employers attract and retain top talent. Your current employees might appreciate them since they can use tax-free dollars toward commuting costs, easing pressure on their pocketbooks — and preventing staff turnover. For employers, these programs are typically cost-effective and may even lower your payroll tax liability, since pre-tax deductions reduce taxable wages. It’s a simple way to add meaningful value to your benefits package without adding complexity to your day-to-day payroll process.
If you choose to implement one or more of the pre-tax commuter benefits options, your payroll services provider can make sure it’s automatically and correctly deducted from payroll and payroll taxes. Simply decide which benefits you want to offer, and set up the appropriate deductions in your payroll system, and apply employee elections each pay run. With the right setup, pre-tax amounts are calculated before taxes are withheld, IRS limits are tracked, and reporting is handled behind the scenes.
You can get set up super fast – we’ll just need some basic details so our team can help assist you with your setup. Our in-house payroll experts will do all the heavy lifting — from setting up your dashboard to migrating your employee and prior wage data. We’ll make the switch easy, and can have you up and running in a matter of days.
Serving Clients for Over 30 Years
Insurance offered through OnPay Insurance Agency, LLC (CA License #0L29422)
