#Commuter Benefits

Everything you need to know about commuter benefits

November 09, 2022

Did you know that your company and could save money every year by offering ?

It’s true, and we’ll show you how starting one is easier than you think! Let’s dive in.

Everyone’s first question – How much will this cost me?

The first thing everyone wants to know before implementing a commuter benefits program is… Where does the money come from?

The answer: Not from your company.

Though the says that you (your company) have to choose to start a program (aka your employees can’t claim this benefit on their own) – they don’t say you have to fund it.

The funds are set aside from the employee’s paycheck in the form of pre-tax dollars and considered a fringe benefit.

Your employees can set aside a max of $280 each month to spend on public transportation, parking, and rideshares.

Huge benefits for you and your employees

At a glance, $280 a month may not seem like much, but the tax savings really adds up. Let’s see what kind of savings both parties could be looking at.

Your employees can save an average of $700 a year. That’s money they can use for groceries, medical emergencies, and activities with their kids.

Your company can save 7.65% on payroll taxes and an average of $40 per month for each participating employee when you add a commuter benefits program. A company with 50 employees can save over $24,000 annually.

The more money you save, the more you have to build and maintain your business.

This is truly a win-win situation.

Now, let’s get into a little of the nitty-gritty.

What kind of transport does a commuter benefits program cover?

If it’s a form of public or private mass transport, it’s one the table. Depending on where you live, and what’s available, transport covers: the subway, trains, buses, trollies, ferries, water taxis, light-rails, vanpools, and even rideshares.

And if your employees have to pay for parking? That’s covered too!

How does the money make it to your employees?

There are two common ways to approach this.

The more difficult is to buy physical passes for the subway, bus, train, etc. This doesn’t really allow flexibility when it comes to what form of transport your employees use. When received, the employer would have to hand them out, which can be a hassle to say the least.

The better way is to offer a prepaid card. Pass it out once, and your employees can use their funds towards their costs.

How can Edenred help

At Edenred, we help employers like you streamline their benefit programs through our multi-benefit solution. We also make it affordable. After all, there’s no reason to save that much in taxes, just to see it go back out the door.

If you’d like to find out how easy we can make offering this benefit to your employees, schedule a meeting with us today and we can explore all your options with you.

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