Transit Benefit Program

To help lower the cost of public transit and parking for those who commute to work at the University, Northwestern deducts University parking fees and transit expenses from benefits-eligible employees' gross pay before calculating taxes.

Paying transit expenses with pre-tax dollars lowers the cost of public transportation. How much lower depends on the individual's marginal federal income tax rate (the rate at which the last dollar of taxable income is taxed), which is affected by exemptions, filing status, family income, and possibly other items. The tax savings usually lower the cost by 10-39%.

The University has partnered with PayFlex, a major processor of pre-tax employee benefits, to administer our Commuter Transit and Parking programs (the campus parking programs administered by the Evanston Parking Office and by University Services for the Chicago Campus are not included). PayFlex also administers the University Flexible Spending and Health Savings Account programs.

Visit the Human Resources website to learn more about the Commuter Pre-Tax Transit Program.