When most people think of commuter benefits they think public transit. However, if you are one of the millions of people who drive to work every day and pay to park (or if you employ them), we have something to help you out too.
Saves Money for both the Employee and the Employer
With commuter benefits you can save on your daily, weekly or monthly parking expenses for work. If you are parking in a garage or a lot and paying for it out of your pocket, it makes sense to see if your company offers commuter benefits to you and your colleagues.
The savings are significant. Commuters can save up to 40 percent in costs by setting aside pre-tax money in your paycheck. In a hypothetical example, if you pay $200 per month to park, you could save up to $80 through your commuter benefit program. When you add it up, it’s almost $1,000 per year in savings. Employers also benefit because they can save up to 7.65 percent in payroll taxes.
Compliant with Local Ordinances
For businesses growing bigger and more successful every year, celebrating your growth should be a milestone moment and an occasion to celebrate. It should also be a reminder that if you are in a city that has a Transit Benefit Ordinance in place, you should begin taking steps toward implementing a commuter benefits program for your employees.
As a matter of fact, on Monday, August 20th California Governor Jerry Brown signed AB-2548 (Friedman) authorizing Los Angeles County to enact a transit benefit program like the policy implemented in the San Francisco Bay Area. The Los Angeles County Metropolitan Transportation Administration (LACMTA) may now consider such policy.
If passed by the LACMTA, this would mark the fourth metropolitan region to have such policies. New York City, San Francisco, and Washington DC already have transit benefit policies in place and have had a profound impact. The 2016 ‘Bay Area Commuter Benefits Program Report to the California Legislature’ found that the transit benefit policy directly resulted in more than 44,000 cars being taken off the road each day.
Edenred Commuter Benefit Solutions is a firm believer that such policies will help expand transportation options, reduce congestion and improve air quality. We also believe that employers will see tremendous benefits from this policy including the need for less parking and a happier, more productive workforce.
Attracts and Retains top talent for organizations
With greater opportunities for flexible work schedules and technology that allows commuters to work on the go, more employees are making the move in search of larger living space, a wider selection of schools, and a change of pace in general. The population of mega-commuters (employees who travel at least two hours each way, five days a week) is growing.
For these employees, the extreme commute (work-related travel that is at least two hours each way, five days a week) may not be so extreme. But according to a recent report, with 41% of employees saying they spend three or more hours a week on personal financial matters, it puts the higher cost of the commute in both money and time, squarely on the map.
More than ever, commuter benefits are key to retaining employees considering this change and attracting employees from a talent pool that seems to be moving further away.
Great for the Environment
Commuting to work doesn’t mean you have to drive. While commuter benefits cover parking, there are plenty of other ways to get to work that are more friendly to the environment.
You can just as easily save money by using your commuter benefits for fares and passes on public transportation. Take a bus, subway, ferry, train, vanpool or trolley; commuter benefits work on all of them. And also ridesharing (Uber Pool and Lyft Shared).
Commuters enjoy the benefits of reading, meditating or relaxing while the roads are clogged with cars, traffic jams and red lights. It can be also a quality time to improve your career during your commute.
Public transportation allows you to cut down on carbon emissions, and reduce costs on gas and tolls. Plus, the extra walking you’ll do from your transit stop to the office will have great benefits for your health.
Choosing the Right Commuter Benefits Program
With the right platform, customized for the specific needs of your employees and for your area’s commuting options, you can maximize participation and increase the savings in dollars and environmental impact. You’ll also experience increased payroll tax-savings for your business, increased employee loyalty, and remain competitive in your recruitment efforts so you can continue to grow.
If you want to learn more about commuter benefits, download the 101 Guide below: