Cost Savings for Employees. Tax Savings for Employers.
Commuter Benefits is an employer-provided voluntary benefits program that allows employees to reduce their monthly commuting expenses for transit, vanpooling and work-related parking costs. Employers can offer commuter benefits as pre-tax only or also include post-tax.
Why employers should offer a commuter benefit plans:
Mass Transit Popularity
The growing popularity of mass transit, parking and ridesharing options like UberPool and Lyft make these benefits an enticing recruitment and retention tool for employees.
Cost Savings for Employees
Commuter benefits programs have the ability for employees to save as much as 40% on commuting costs.
Tax Savings for Employers
Employers can save money on federal and state payroll taxes (depending on location).
Certain metropolitan areas mandate businesses offer transit benefits to their employees. Examples: San Francisco, New York City, New Jersey, Washington, D.C., Seattle.
Commuter Benefit Payment Solutions
|Terminally restricted network for mass transit plans.
||Cash reimbursement for parking plans.
||Electronic fare media and pass orders made directly with transit authority for mass transit and parking plans using existing smartcard or account system.
|MCC network for parking plans and vanpooling options.
||Cash reimbursement for vanpool.
|UberPool and Lyft for ridesharing with at least 6 passenger spots.
||Cash reimbursement for any post-tax expenses.
More Benefit Spending Account options:
- Health Savings Accounts (HSAs)
Flexible Spending Accounts (FSAs)
- Health Reimbursement Arrangements (HRAs)