"Monthly transit passes or transit vouchers can be purchased as a tax-free benefit (under Section 132(f) of the United States Internal Revenue Code). The money spent by the employer can be tax-deductible as a business expense; please check with your accountant or tax attorney. Employees can see a savings of up to $450 per year their federal income and FICA taxes.  Employers can see an savings of $100 per employee, per year."

For more tax savings information check out the tax calculator.