Uber Adds Locations for Tax-Free Transit Spending

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By John Herzfeld

Dec. 13 — Uber and WageWorks will expand the scope of a collaborative project to offer ride-pooling services to consumers eligible for pre-tax commuter transportation benefits, the companies said.

Uber Technologies Inc. and Wageworks Inc. launched the partnership in August with a plan for New York City residents and have since added Boston and Washington, D.C. Starting Dec. 14, they’ll offer the arrangement in San Francisco, Philadelphia, Las Vegas, Denver, Atlanta, Miami and New Jersey.

The e-hailing transportation network platform joined with WageWorks on a system to allow workers to pay for its uberPOOL service with pre-tax commuter benefit accounts offered through employers.

Based in San Mateo, Calif., WageWorks administers consumer-directed benefit plans, such as health savings accounts and commuter transit and parking programs, for some 58,000 employers, covering 4.5 million people, according to the company’s website.

Tax Code Sets Limits

Pre-tax commuter benefit programs are covered by Internal Revenue Code Section 132(f), which sets conditions for eligible transportation and limits on eligible employee contributions.

Executives of both companies, in announcing the expansion, touted the program as helping commuters save money, reducing the numbers of cars on the roads and easing transit convenience.

To contact the reporter on this story: John Herzfeld in New York at jherzfeld@bna.com

To contact the editor responsible for this story: Ryan C. Tuck at rtuck@bna.com

For More Information

More information on WageWorks commuter benefit programs is at http://src.bna.com/kJd.

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