Did you know that August 14th is National Financial Awareness Day? This special holiday is dedicated to developing the financial principles and practices that can help build a solid financial future from now through retirement.
Financial awareness, more commonly known as financial literacy, is a key element when it comes to financial success. One of the biggest aspects of financial literacy is learning how to save more and spend less. As a business owner, there are several ways you can contribute to the financial success of your employees and help them save big, every day.
Let’s look at one simple yet effective tactic – commuter benefits.
Saving with commuter benefits
Commuter benefits don’t just save employees money, they can also prove to be beneficial for your company. Since employees are saving money tax-free on commuting costs, employers pay less in payroll taxes – ultimately saving an average of $40 per month for each participating employee.
On the other hand, employees can save money by reducing their taxable income. By spending up to the IRS limit of $280 per month, employees can use their paychecks to commute tax-free. This seemingly small option has a huge impact on those who spend an annual average of $1,612 commuting to work via public transportation.
Commuter benefits options
When developing a commuter benefits plan, there is no set blueprint that will work for every company.
We recommend working with your HR department and gathering feedback from your employees to start. It’s also important to understand what qualifies for the IRS Commuter Transportation Benefit reimbursement. Currently, transit passes, qualified parking, and rideshare options such as Lyft qualify for reimbursement.
You can choose to offer just one or all these benefits to employees to reduce the stress of a daily commute and contribute to their financial success.
All in all, giving thought to how your business encourages financial awareness in your employees is important. Commuter benefits are just one of many ways to lead employees and your business to make sound financial decisions.
Interested in adding commuter benefits for your employees? Schedule a meeting to learn more today!
