What does pretax mean?

Pretax is the part of your paycheck that has not been taxed yet. When you spend pretax dollars, you are spending money before the government takes income and payroll taxes out, so you keep more of what you make.

How a paycheck normally works

You earn an hourly wage (plus tips, if your job has them).
On payday, your gross pay is everything you earned before any taxes come out.
The government takes out federal, state, and FICA payroll taxes.
What is left is your after-tax pay — the money you actually spend.

What "pretax spending" changes

Pretax spending means you can use some of your gross pay on specific things the government has approved, before taxes are taken out. For commuter benefits, those specific things are parking and mass transit for your commute to and from work. Gas, tolls, ride-share trips that are not vanpool, and personal trips do not count.

Where Alice fits

Use Alice to spend pretax on parking and transit. Most frontline employees see roughly 20% in "cash back" on eligible commuter spending, because that is about what a typical paycheck pays in federal, state, and FICA taxes. Your actual rate depends on where you live, your income, and your filing situation.

Think of it like a refund you get inside every paycheck instead of waiting until tax season. There is no line on your tax return for commute costs — pretax commuter benefits are how the savings reach you.

Questions? Reach the Alice team at (888) 431-4355 or 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.

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