WiredCommute

With rising gas prices, increasing congestion, and a heightened awareness of environmental and personal health, Americans are looking for new ways of getting to and from work. The Center for Neighborhood Technology estimates that, on average, 27% of a family’s income goes towards transportation cost. With gas prices again soaring above $4.00/gallon in much of the country, the need to incentivize alternative commuting options has never been greater.

Commuter benefits allow pre-tax deduction amounts of $230 per month for transit, vanpool, and parking expenses. In addition, it allows employers to subsidize up to $20 per month for commute-related bicycle expenses. The net result of this benefit is a reduction in commuting costs for employees and payroll taxes for employers, a less-stressed more productive workforce, less congested highways, cleaner air and a demonstrated commitment to the triple bottom line (people, planet and profit). Over the past four years, employers participating in commuter benefits with Edenred saved over $75 million in payroll taxes. Commuter benefits industry wide the estimated payroll tax savings to employers over the same time period is just shy of $275 million. What would you, as business professional, do with the savings…hire new employees, invest in research and development, or increase your marketing budget? These are just a few of the ways employers using their savings.

Unless action is taken, the cap on transit and vanpool will reduce from $230/month to $120/month at the end of this year while parking will remain the same; thereby giving a financial incentive to drive alone to work. The Commuter Relief Act introduced today takes that action. By establishing parity between transit and parking benefits at $200/month, this legislation will eliminate the financial incentive to driving alone while also making the transit portion of the benefit more flexible by encouraging companies to create and expand vanpool programs. This is all done without increasing the federal debt one dollar.