#Commuter Benefits

Are commuter benefits worth it for your company?

April 25, 2023

If your employees need to go to an office, no matter if it’s just a few times a month or a week or even every day, investing in commuter benefits makes all the difference for your company.

Of course, in some states, commuter benefits are provided by law, but even if you’re not in one of them, there are many advantages in offering these types of programs in your employee benefits package.

By offering commuter benefits, the employer relieves the transportation fees spent by their employees and even helps them to commute to the company.

Hybrid work is a reality

Nowadays, many companies offer the option of hybrid work, allowing employees to choose whether they want to work from home or in the office. And several times, they only go there on a few specific occasions. That’s what we call hybrid work.

In these cases, the company can also offer commuter benefits to its team of employees. Commuter benefits, also known as commuting benefits or transit benefits, are perks or other compensations for employees to help offset the financial cost or time cost of commuting to and from work.

These benefits can be offered before or after taxes, meaning pre-tax commuter benefits are especially useful as they reduce taxable income, saving your employees money on tax payments.

Economy to both sides

Commuter benefits help both sides save money. Employees save by using pre-tax or after-tax dollars, while the company saves on taxes.

Among the benefits of investing in commuter benefits, there are:

  • Decreased employee frustration with their daily commutes.
  • Improved employee job satisfaction: Commuter benefits help create a more enjoyable and productive work environment.
  • Greater environmental awareness: Some programs offer rides, public transport, and other transportation options aligned with sustainability.
  • Reduced employee turnover: Offering this type of benefit can make your employees feel valued and more likely to stay in their jobs.
  • Attracting new talent: The better your benefits package, the more talent will be attracted to your company, which can be a great strategy for your HR.

There are different types of commuter benefits, such as carpooling programs, public transport subsidies, free or discounted parking, and more. It’s important to choose the benefits that best meet your employees’ needs and fit your company’s budget.

Therefore, offering commuter benefits can be a great way to improve employee satisfaction and retention, as well as save on taxes and help the environment. Consider investing in this type of benefit for your team and see the positive results for your company.

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