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bonafideprincess t1_it138zk wrote

The best way to go about it imo is to get the SmartLink for PATH (20- or 40-ride, auto refill on your transit benefits card) because then rides are $2.60 instead of $2.75, and then do OMNY for NY (also with your transit benefits card) because they fare-cap, meaning that if you pay for 12 rides a week with the same card, your next rides are free (runs Sunday through Saturday I believe).

If you get transit benefits with your job, 100000% opt in. It’s pre-tax money that can only be used for transit (a lot more strict if you’re parking vs. using public transit), and you’ll receive a card to use. I was able to load mine into my smartphone for Apple Pay, then select it as my transit card so I don’t have to use Face ID to verify the purchase at each turnstile.

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abby2207 OP t1_it15r5e wrote

can you explain this pre tax thing (i also have it, it’s like through this wage work or insperity), I am totally unfamiliar with these terms. How do i make the most out of this (on the benefits, it also says to order it before 10th of each month, what does it mean?)

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vocabularylessons t1_it1cxdy wrote

  • Your employer should give you a rundown of benefits during new employee orientation, etc.
  • One of the benefits that many employers offer is pre-tax transit account.
  • When you get paid, you get taxed on the amount you get paid every paycheck. Example: Get paid $1,000, tax withholding is a total of 25%, you get $250 withheld from your paycheck (note: you may get some of this back when you file taxes and get a refund, but for budgeting purposes, you're only taking home net $750 every pay period despite gross $1,000 pay).
  • Things like insurance, transit accounts, etc. are pre-tax, meaning they are deducted from your taxable income. Example: If paid $1,000 and your pre-tax benefits cost $150, then you're taxed 25% only on $850 instead of $1,000. Basically, the money you set aside each paycheck for whatever benefit is 'diverted' before taxes apply. So no taxes apply to the $150 and it goes straight to whatever the benefit is (health savings account, transit account, etc.) You essentially take home an extra $37.50 per paycheck to 'spend' on transit, healthcare, etc. instead of the government withholding that (until you get a refund).
  • The upshot is that you now have money to spend on transit fares and you didn't have to pay taxes on the money you earned. It's 'taken out' of your paycheck and put into a separate account that you have access to and can only use for transit expenses, but you were going to spend the same amount of money on transit anyway and now you saved some money by paying less in taxes overall.
  • I have wageworks for transit benefits. Whereas I have to choose my health insurance, retirement when I first start my job, I can opt into wageworkers anytime. Once I opted in, wageworks sent me a debit card that I can use for transit purchases. I chose to divert $X every paycheck to my wageworks transit account, and that debit card lets me spend that money I accumulate in the transit account. It's all money that I earned but on which I avoided taxes.
  • You can use the debit card at the PATH or MTA machine, and/or add the debit card to your OMNY account and connect the OMNY account/card to your contactless payment (Apple Pay, Google Pay, whatever).

For PATH trips, I recommend that you get a SmartLink card and buy bulk trips (40 trips) with auto refill. You get a modest discount when you buy bulk. The monthly unlimited 'pass' (which is loaded onto your SmartLink card) is only worth it if you're taking PATH everyday and taking weekend trips into the City, otherwise don't bother. For MTA, like others have said, if connect to OMNY and your phone, your payments per week are capped.

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abby2207 OP t1_it4yqt0 wrote

this was the best explanation, thank you so much! in your opinion, is putting 150$ into wagework a good idea, I am looking at 40 trips path card and then rest for subway in nyc. Should I go more or stick to just 150

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vocabularylessons t1_it5em7g wrote

To start, put in enough money to cover your guaranteed transit expenses. If $150 per month is your total train expense, then that's your answer. If you later realize that you take more weekend leisure trips than anticipated or realize that you don't need to be in office everyday, you can always increase or decrease your contribution level anytime you want through wageworks. (In that way, it's different from your healthcare selection, which you can choose/change only once a year.)

Also see if your employer makes any contributions to your wageworkers account to supplement your contributions.

Aside from that, I'm not comfortable with providing advice since I don't know enough about your circumstances to tell you how to manage your money.

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bonafideprincess t1_it1a2jw wrote

The way it works at my place of employment is that I opt in a specified amount each month, and it’s taken out of my paycheck before taxes get taken out and loaded onto a card that I also happen to share with my FSA money (which is also pre-tax). With that card, I’m able to pay for all my public transportation. It’s been really great because it’s money I already set aside and don’t have to worry about having enough money for the train each month!

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Miringanes t1_it1xmbr wrote

Assuming you don’t have wageworks. Been waiting for Apple Pay to be rolled out with them and it doesn’t look like it’s happening any time soon

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