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Benefits to Companies

How does this affect my bottom line? 

To answer this question, we need to consider direct and indirect costs and benefits. In general, the benefits to companies and their employees are high compared to the cost of administering the programs.  Since many of the benefits are indirect, they may be difficult to quantify on a balance sheet. Nevertheless, they can still have real impacts on the bottom line.

You many want to consider the following when evaluating your Commuter Benefits programs.

Direct benefits: Reduced need for parking
Lower payroll taxes
Cost savings to employees
Indirect benefits: Improved employee recruitment
Access to broader labor markets

Longer retention
Lower turnover costs
E
nhanced productivity
A
dditional flexibility to grow and expand
Recognition as a community leader
Improved employee health and wellness
Improved employee loyalty and morale
Direct costs: Cost of subsidy/incentive programs
Hardware/software costs (telecommuting)
Indirect costs: Administrative oversight costs
Marketing costs
Possible productivity losses

You can also implement many components of Commuter Benefits for free or for a nominal cost, such as designating carpool parking, providing bike racks, participating in free Traffic Solutions promotions, and providing information in break rooms or through newsletters.

 
Lower Payroll Taxes - Pre-tax Deductions for Your Commuters

Providing employees with pre-tax deductions for transit passes and vanpooling to work may actually save you money by reducing your company’s payroll taxes. The benefit for transit and vanpool riders for 2015 is $130 per month. Transportation fringe benefits, [IRS Code section 1.132-9], can come as a cash reimbursement from employers (the money you give your employees will be tax free), a pre-tax payroll deduction from an employee's salary (you will save on payroll taxes), or a combination of the two. Read more at IRS Publication 15-B (go to page 18).

Check out the following calculators for tax saving estimates for both your company and your employees:
Commuter Check vouchers for transit, vanpool, and bicycle commuters from Edenred (formerly Accor Services).

Join other employers and offer your biking employees a $20 reimbursement. As of January 1, 2009, there is a commuter tax provision for bicyclists too.
A qualified bicycle commuting reimbursement, means any employer, if they chose to do so, may provide a reimbursement of up to $20 per month for reasonable expenses incurred by the employee in conjunction with their commute to work by bike.

Visit the League of American Bicyclists for more details on the new bike benefit.
 

A Commuter Benefits Program to Fit Your Needs

Of course, the types of Commuter Benefits programs that work for your particular organization are unique. Traffic Solutions can assist you in surveying your employees to find out what type of Commuter Benefits program fits your needs. Sample online survey.

 

Beyond the bottom line

  • Improved quality of life and community character
  • Enhanced air quality
  • More effective and efficient use of the transportation system
  • More cost-effective transportation solutions
  • Greater economic development potential
  • Fewer road construction impacts

We all want clean air and less traffic congestion in Santa Barbara County.  We can grow our businesses and be prosperous while maintaining our quality of life. By offering Commuter Benefits, your company can be part of the solution.

A
n effective Commuter Benefits program can also be a major part of your company's Sustainability, Global Warming, and Environmental Initiatives (read more).

 

Traffic Solutions is a division of the Santa Barbara County Association of Governments

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