How Alice costs employers $0 out of pocket in NYC
When an NYC employee spends pretax on parking or transit, the employer saves on payroll tax. Alice bills exactly that savings amount, so there 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 parking spend: $50 (paid pretax). Taxable wages drop to $950.
- Employer payroll tax at roughly 7.99% on $950: about $75.91
- Employer payroll tax saved on this paycheck: roughly $3.99
- Alice service fee invoiced: that exact $3.99
The result
$1,000 wages + $75.91 employer payroll tax + $3.99 Alice invoice = about $1,079.90, the same as before. Net change to your P&L: $0.
Need help?
Want this walkthrough for your jurisdiction? Email admin-support@thisisalice.com or call (929) 552-4625.
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.