Are your employees starting the day stressed, tired, and disgruntled because of their commutes? This doesn’t have to be your company’s reality. Edenred Commuter Benefits Plans can solve your employees’ commuting problems and be a catalyst for improving your company’s efficiency and reputation.
Keep reading to learn why these targeted, company-specific plans are such an excellent investment for your organization.
A Quick Employer’s Guide to Commuter Benefits
To help you understand commuter benefits and how they can best serve your employees.
What is it?
- Commuter Benefits are employer-provided funds to assist employees with their commuting expenses, such as transit fares, parking fees, or other eligible transportation expenses. These funds can be offered on a pre-tax basis, providing employees a tax advantage.
- IRS Tax Limit: The current IRS tax limit for commuter benefits is $300 per month for transit expenses and an additional $300 per month for parking expenses, as of the expected value for 2023.
Exactly how does it work?
- Pre-Tax Savings: Our Commuter Benefits Plans allow employees to set aside tax-free money from their paychecks every month, up to the IRS tax limit, to cover commuting costs.
- Commutes That Are Covered:
- Transit Riders: Bus, subway, train, trolley, ferry, water taxi, light rail.
- Drivers: Parking expenses, meters, garages, and lots.
- Carpoolers: Vanpool.
- Biking Benefit: Employees who bike to work can spend up to $20 per month on equipment and repairs.
How can employers and employees save cash together?
- Employers: save an average of $40 per month for each employee, resulting in significant annual savings.
- Employees: save, on average, $790 each year, or more, when they set aside up to $300 per month to cover transit commuting expenses.
Where are commuter benefits required by law?
- Berkeley & Richmond: 10 or more employees who work at least 10 hours per week.
- Seattle: Effective from January 1, 2020, for businesses with 20 or more total employees.
- New York City: Businesses with 20 or more full-time employees who work at least 30 hours per week.
- New Jersey: Enforcement is anticipated to begin from March 1, 2020, for businesses with 20 or more total employees.
- San Francisco Bay Area: Businesses with 50 or more full-time employees who work at least 20 hours per week.
- Los Angeles: Businesses from 50 to 249 employees (full-time and part-time) in a single workplace.
- Washington.: Businesses with 20 or more total employees.
- Philadelphia: Businesses with 50 or more employees working an average of at least 10 hours a week.
Setting up commuter benefits: How?
- Easy Sign-Up: Setting up commuter benefits is hassle-free, saving your company and employees valuable time. We offer a simple and straightforward sign-up process, enabling employees to focus on their important tasks. To get started, visit our sign-up page. Our team will provide you the necessary documents and support to ensure a smooth setup.
What will you gain?
When you offer commuter benefits plans, you not only help your employees with their commute, but you also gain many benefits that can help your company succeed.
Attract and retain top talent
Imagine being a prospective employee, weighing job offers. On one hand, there’s a company that offers a basic salary package. On the other hand, there’s your company, offering not just a competitive salary, but also a comprehensive commuter benefits plan that eases the burden of commuting. It’s clear which company they’ll lean toward. A commuter benefits plan makes your company more desirable, attracting top talent and retaining staff.
Save money on taxes
We’re not saying your company will benefit just because you think it will. The benefits are real and financial. Offering commuter benefits pre-tax reduces your employees’ taxable income, which decreases your payroll taxes. It’s a win for both you and your team.
Reduce transportation costs
The cost of commuting can be a significant drain on your employees’ wallets, especially in major cities. With Edenred Commuter Benefits Plans, you can offer funds that alleviate this financial strain. Whether it’s contributing to their public transit fares, offering parking allowances, or reimbursing carpool costs, your employees can enjoy significant savings on their commuting costs. This action not only improves their financial well-being but also enhances their perception of your company as one that genuinely cares for its employees.
Improve employee satisfaction and engagement
By addressing the everyday commuting challenges that your employees face, you are sending a clear message – you hear them, and you care. This can do wonders for their job satisfaction and engagement. When they see that you’re actively working to make their work life easier, they’re likely to feel more valued, motivated, and engaged in their roles. People are more productive and loyal when they feel valued, which helps your company’s success.
Foster a culture of sustainability
Promoting environmentally friendly commuting options like vanpooling, biking, or using public transportation can enhance your company’s green credentials. Doing so can reduce your company’s carbon footprint and create a culture of environmental responsibility among your employees. This can positively impact your brand image and make you more attractive to clients, partners, and prospective employees who value sustainability.
Meet regulatory requirements
As we saw above, in various states and cities, companies of a certain size are required to offer commuter benefits. With Edenred’s commuter benefits plans, you can easily follow these regulations, avoiding potential penalties while also benefiting your employees. It’s compliance, made easy and beneficial.
Make the Change Today
Our commuter benefits plans help you get past daily commute problems and use them as stepping stones for growth and success. If you make it easy for employees and set your business up for success, you’ll get and keep top talent.
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