How $0 No-Out-Of-Pocket Cost Works in NYC

The short version: when an NYC employee spends pretax on parking or transit, the employer saves on payroll tax. Alice bills exactly that savings amount. The result is no change to your P&L.

Here is an illustrative example for one pay period. Actual numbers vary by tax jurisdiction, employee earnings, and your specific payroll-tax rates.

Before Alice

Employee gross wages: $1,000
Employee parking spend: $50 (paid post-tax, no benefit)
Employer payroll tax at roughly 7.99% on $1,000: about $79.90
Total employer cost: about $1,079.90

After Alice

Employee spends the same $50 on parking, but pretax. Their taxable wages drop to $950, and they keep more of what they make in their paycheck.
Employer payroll tax at roughly 7.99% on $950: about $75.91
Employer saved roughly $3.99 in employer payroll taxes on this paycheck.
Alice invoices that exact $3.99 as our service fee.

The result

$75.91 in lower employer payroll tax + $3.99 Alice invoice + $1,000 wages = about $1,079.90.

Net change to your P&L: $0.

Want this walkthrough for your specific jurisdiction? Reach the Alice admin team at (929) 552-4625 or admin-support@thisisalice.com.

Savings shown or implied — including any reference to "cash back" or take-home pay — are illustrative. Actual savings depend on your tax rate, benefit elections, and eligible spending each pay period. "Cash back" in Alice's materials refers to the federal, state, and FICA payroll taxes you don't pay on eligible commuter spending. It is income tax you keep, not a cash payment from Alice, your employer, or any third party. Alice does not provide cash back, rebates, or any direct financial benefit in connection with the Program. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.

Figures shown are for the 2026 plan year and are set by the IRS. Limits are indexed annually; we update this article each November when the IRS issues the following year's Revenue Procedure.

Pretax Hero Visa Commercial Card is powered by Stripe and Alice Card is issued by Celtic Bank. Program funds held at Fifth Third Bank, N.A. (Member FDIC). Use of card and program is subject to the cardholder terms and related agreements presented at issuance.

Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.