What law states employers can only proved $102 per month for train transportation?

Question

i take the metrolink into downtown los angeles everyday and pay $194 for my monthly pass. my employer only provides $102 but they pay $180 for monthly parking for everyone who drives.

When i asked why we train takers can't get $180 as well, i was told there is a law that limits employers to only pay $102. Is this true? i know of some people that get it all paid for.

Answer 1

Lies.  AFAIK, there's no law that limits how much any private employer can pay anyone for anything.  That might be the MINIMUM.  That might be all they HAVE TO pay, but I doubt they even have to pay you anything.

Answer 2

No, that is not true.  In fact, taking mass transit is encouraged and would be a bigger tax write-off for them.

Answer 3

Your pass is not good *only* for commuting to work. Parking in a parking lot near work *would* be.

The IRS rules don't directly prohibit paying more than $102 for a $194 monthly pass, but if your employer's accountants have concluded that $102 of the pass is for commuting, and $92 of the pass is for other use of the mass transit system, then that's sufficient.  Or they could conclude that you're saving $92 in gas, insurance, and wear-and-tear by not driving your car.

This kind of thing isn't something that the IRS scrutinizes carefully when they audit a tax return. However, it's company policy. If you're unhappy with the total compensation the company gives you, you're free to quit and work for yourself or for someone else.