two women and a man with laptop
FareShare for Employers

The FareShare Program encourages the use of transit and vanpooling by employees working in Montgomery County by matching employer contributions. 

The program offers businesses incentives to:

  • provide transit subsidies to their employees
  • reduce traffic congestion
  • support achievement of Non-Auto Driver Mode Share (NADMS) goals in the County’s Transportation Management Districts (TMDs)

FareShare encourages employers to begin a commuter benefits program, or enhance the impact of their existing program, by increasing the amount of transit subsidy offered to employees to attract more participants.

FareShare helps employers:

  • contribute to their employees’ transit and vanpool commuting costs
  • lower their taxes
  • get a tax credit
  • make their employees happier in the workplace

FareShare staff will visit your office free of charge to help you set up a commuting benefits program that is tailored to your company's needs.

FARESHARE: How It Works and How to Get Started

 
  • Employers can offer any amount up to the maximum of $300/month permitted by federal tax law as a tax-free benefit starting January 1, 2023
  • The county will reimburse the employer for any amount provided over the minimum $25 contribution, up to the full $300/month
  • Maximum of $40,000 is available in one year to any one employer

Example

Employer offers a transit benefit of $100 per employee per month
Montgomery County reimburses $75 per employee per month
The employer pays $25 per employee per month
 
  • FareShare helps employers to cover start-up costs and test the level of benefits that works best.
  • It is not intended to provide an ongoing county subsidy for employers.
  • Employers are encouraged to set the maximum subsidy per employee at a level their organization will be able to sustain once the County’s match ends.
  • Total benefit provided to any employee cannot exceed their actual commuting cost, by federal law.
  • Employers are eligible for a state tax credit of 50 percent of their contribution, up to a maximum of $100/employee/month. This credit is available to both for-profit and non-profit organizations. For more information visit Commuter Choice Maryland at http://www.mdot.maryland.gov/newMDOT/Commuter/employers
group of five adults

 TRANSIT BENEFITS/PRE-TAX PAYROLL DEDUCTION 

  • Research shows that providing employer-paid transit benefits and/or allowing employees to receive their benefits as a pre-tax payroll deduction is highly effective in persuading employees to switch from driving to using transit.
  • A maximum of $300 per month ($3,600 per year) is allowable tax free. This can be a direct benefit or a pre-tax payroll deduction or a combination of both for use of transit or vanpools to commute to work.
  • Employees can receive their benefits in additional compensation or as a pre-tax payroll deduction from their paycheck or a combination of both. When employees use their pre-tax dollars to pay for their commute, taxable income is reduced. That leaves less taxable payroll, which saves the employer money.
  • Some employers may have cost concerns about providing up to $300/month in transit benefits. One possible way to overcome that concern may be with a combination of direct transit benefits offered by employers and pre-tax payroll deduction


SIMPLE 3-STEP PROCESS

1. Employer completes the FareShare Employer Enrollment Form. To receive a form contact Commuter Services at 240-773-BWTW (2989) or email, mcdot.commuterservices@montgomerycountymd.gov.
2. Employer submits the following (to be provided after enrollment):
  • Employer Worksheet Invoice
  • WMATA SmartBenefits © Order Confirmation Form
3. Employer receives reimbursement from the County.

Bottom line:

  • Employers can help pay for their employees’ transit and vanpool commuting, lower their taxes and get a tax credit for their business.

  • Employees receive enhanced benefits at a lower cost and they save money on their commute.

  • Together, both employers and employees help reduce pollution and traffic congestion.

To Learn More About FareShare

  • Download our brochure, or call us at 240 -773-BWTW (2989).
  • Tell us where your business is located. Our FareShare staff will visit your office free of charge to help you set up a commuting benefits program that is tailored to your company's needs.
  • Ask for free maps, brochures, and tips to help you employees streamline the commute between home and work. It's that easy! If you would like to receive a hardcopy of our latest transit benefits brochure, send an email to mcdot.commuterservices@montgomerycountymd.gov or call 240-777-8380
Maryland Commuter Choice Tax Credit

With the Maryland Commuter Choice Tax Credit employers can receive a tax credit of 50 percent of the amount they spend on employee commuting benefits - up to a maximum of $100 per month for each participating employee.

SmartBenefits© Program

SmartBenefits © is a web-based program that lets employers assign the dollar value of employees' monthly commuting benefit directly to the employees' SmarTrip® cards. This can be done right from your computer using WMATA's website. With SmartBenefits©, you'll immediately eliminate the need to distribute paper vouchers to Ride On, Metrorail, Metrobus, most regional bus systems', and van pool commuters.

Guaranteed Ride Home

If you use mass transit, carpool, vanpool, bicycle, or walk to work at least twice a week, you are eligible for the Guaranteed Ride Home (GRH) program, which offers you a free ride home by taxi, rental car, bus, or train, up to four times a year when unexpected personal emergencies or unscheduled overtime arise. Register with Commuter Connections, Metropolitan Washington Council of Governments or call 1-800-745-RIDE (7433).