#Commuter Benefits

Win employees with commuter benefits

May 03, 2022

Employers should always seek new ways to develop highly engaged employees while also taking steps to attract new ones. One way to do this is to focus on the benefits package it offers to employees.

Commuter benefits are an emerging type of employee benefit that has earned positive reactions from both workers and their employers.

This overview will explain why commuter benefits are a great benefit to offer to your employees.

What are commuter benefits?

An employer-sponsored commuter benefits account allows employees to take money from their paychecks every month to pay towards commuting costs like public transit, rideshares, and qualified parking expenses. These funds employees spend are tax-free and can reduce their federal taxable income. Currently, the IRS allows employees to set aside up to $280 per month for commuter benefits.

Employees who set aside funds in commuter benefits accounts can save a lot of money in the long run. For example, someone who earns $55,000 per year and uses the maximum amount of commuter benefits takes home approximately $1,500 more than someone with the same salary and the same commuting costs but doesn’t take advantage of commuter benefits program.

Commuter benefits have a positive impact on both employees and employers

Both employees and employers benefit significantly from having commuter benefits in their benefits package.

The main financial benefits for employees are lowering their taxable income and saving money. But there are several other important benefits too. Commuter benefits also encourage the use of public transit and give employees a good reason not to drive to work. Driving is not good for traffic congestion or the environment. Commuter benefits gives your employees less stress and less wear and tear on their vehicles.

Employers also benefit financially when their workers have access to commuter benefits. A company offering commuter benefits can reduce its payroll tax bill since employees lower their taxable income. For example, if a company has 50 employees participating in a commuter benefits program, the annual savings for that company will be around $24,000 through decreased payroll tax payments.

How can commuter benefits help employers attract new talent?

One way to stand out in the current job market is to offer benefits directly related to commuting. Offering employees a way to reduce their taxable income while adding new commuting options is an attractive benefit when you’re recruiting new talent. A talented candidate may recognize that your company has differentiated itself from others by offering unique benefits like commuter benefits, giving them more reasons to accept your offer.

How do commuter benefits help companies create an engaged workforce?

Having a high level of employee engagement can have a significant impact on your business. High employee engagement can reduce your employee turnover, something that’s important during this time of high resignation rates. Employee engagement also means employees are more likely to believe in your company’s mission, build better relationships with each other and your clients, increase sales, and be more productive.

There are many other factors that have a positive impact on employee engagement. Offering meaningful benefits that recognize your employees’ needs and concerns is one way to boost engagement throughout a workforce. Listening to their feedback can also help create an engaging environment.

Surveys of employees indicate most workers consider the strength of their benefits packages to play a critical role in job satisfaction. Although you still need to offer competitive pay and provide workers with the opportunity to grow within your company, workers themselves have made it clear that the right benefits can result in higher levels of engagement.

Offering commuter benefits can address a common source of stress for employees. Commuter benefits help with commuting expenses and make it easy for your employees to take public transit and relax during their commutes instead of being caught in stress-inducing traffic. That may mean they are calmer and more focused throughout the workday.

Commuter Benefits: Good for everyone

If you’re looking to increase job satisfaction among your current employees and attract new talent, we strongly consider a commuter benefits program.

Employees will be happy with the financial and environmental benefits while also appreciating less stress when it comes to commuting. You will be satisfied when you see that commuter benefits save your company money while promoting high employee engagement.

Commuter benefits are an excellent benefit for businesses and their employees. Schedule a meeting today, and we’ll be happy to review all your options with you.

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