What are Commuter Benefits?
Commuter benefits give employees the opportunity to use tax-free dollars on commuting costs and keep more of what they earn in their paycheck. Companies that offer pre-tax commuter benefits also save money by reducing payroll taxes. Watch this video and see how your company and employees can take advantage of huge savings.
How Commuter Benefits Work
When an employee enrolls in our commuter benefits program, they can pay for their transit and parking expenses with pre-tax money, up to the current IRS tax limit of $300 / month*.
In addition to pre-tax transit and parking benefits, we also offer a biking benefit. Although there are no tax benefits to employers who offer biking, it is a great perk to offer for employees who may bike to work. The biking benefit allows commuters to spend up to $20 a month for equipment and repairs.
*As of the 2023 tax year.
Commuter Benefits eBook
Download the free Edenred Commuter Benefits 101 Guide: A complete guide to understanding how commuter benefits work, designed for HR professionals and benefit managers.
* If you are an existing client please reach out to your Customer Success Manager for a comprehensive guide specific to your program.
Commutes That Are Covered
Whether an employee commutes by car, bus, subway, train, ferry, or vanpool, we offer a wide variety of payment options to ensure they can enjoy the savings and convenience of this flex plan commuter benefits.
We also offer shared mobility options to help solve some of today’s commuting challenges and to help cover the first and last mile problem.
Do you want to learn more?
Top reasons to offer commuter benefits:
- Employees save on commuting costs while employers save on payroll taxes
- Attract, retain and engage employees
- Create a happier, stress-free and productive work environment
- Easy, hassle-free sign up leaves more time for other important tasks
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Get started by setting up a call with one of our specialists.
Pre-tax Commuting Options
Public Transit includes bus, train, subway and ferry services. We offer many options to pay for public transit such as our prepaid card, smart cards and transit passes.
Vanpools are similar to carpools. They carry between 5-15 people who commute to and from work together in a van or SUV.
We offer a variety of options to pay for parking including the prepaid card, cash reimbursement, and direct pay, where we can even pay parking providers on your behalf.
Post-tax Commuting Options
Want to bike to work but don’t have a bike? No worries! With bike sharing you can rent a bike from one location and return it to another, and pay for it with your prepaid card.
E-scooters & Moped Rentals
Environmentally friendly and affordable, e-scooters and mopeds are a great way to get to work for the urban commuter, and you can pay them with your prepaid card.
Pay for bicycles, bicycle equipment, repairs, and/or storage fees associated with your commute to work at participating bicycle shops nationwide.
Corporate Shuttle Service
A smart shuttle solution that combines technology, efficiency, savings and sustainability in a single service.
Our prepaid commuter benefits card can be used to pay for public transit, parking, bike share, and e-scooter sharing. It’s fully integrated into your commuter benefits account.
We offer several transit agency-specific Smart Cards across the nation. We are constantly adding more to our catalog.
We offer products for hundreds of transit agencies nationwide. Select your transit pass through your online account, and you will receive your product by mail each month.
Vouchers are redeemable for transit, parking, vanpool purchases, or towards biking expenses associated with your commute to work.
Edenred’s prepaid card is compatible with Apple Pay, Samsung Pay and Google Pay, so employees can easily pay for transit right from their mobile device.
Guaranteed Ride Home
Edenred Guaranteed Rides gives employees a sure-fire way to get where they need to go, by providing them with alternative modes of transportation. Whether they want to avoid crowds, get home in an emergency, or go to an event, they can get there without the stress. Here’s how it works:
- Ability to order a private Lyft ride directly from the Edenred Benefits mobile app
- Reimbursement for public transportation, taxi, rental car or ride share up to $25.00 per claim or $50.00 per month
- Employees can file up to 2 claims per month
- Claims can be submitted for reimbursement within 30 days of the trip date
- Employees will get a reimbursement check in the mail
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Many cities and regions have recently passed mandatory commuter benefit ordinances. These ordinances require businesses with a certain number of employees to offer pre-tax commuter benefit programs.
Below are the regions that currently have a commuter benefit ordinance in place:
- New Jersey
- New York City
- Washington, DC
- Los Angeles
- Berkley & Richmond, CA
- San Francisco Bay Area
- Chicago (January 2024)
Download the Commuter Benefits Ordinance Guide to learn more
Ready to Get Started?
Contact our sales team to learn more about our commuter benefit programs.
Employers save an average of $40 per month for each participating employee. If 50 employees participate over 12 months, the company can save over $24,000 annually.
Try the calculator and see how much your company could save on payroll taxes.