1 Providing Commute Choices to Employees Krute Singa
Dec 24, 2015
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Providing Commute Choices to Employees
Krute Singa
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Presentation Purpose
1. Overview of commuter benefits
2. San Francisco regulations3. Support and how to
promote the program
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Presentation Overview
1. Why Provide Commute Options?
2. How to Offer Commuter Benefits?
3. Services 4. Upcoming Events
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1. Why Provide Commute Options?
• What are commuter benefits?– Transit, bicycling or ridesharing benefits that
provide financial incentives not to drive alone to work• E.g. transit passes, bicycling subsidies, vanpool
benefit
– Federal tax law allows businesses to provide benefits to employees (IRS Qualified Transportation Fringe Benefit, tax code 132(f))• Employers pay no payroll taxes on these
benefits• Employees pay no payroll or federal income
taxes
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1. Why Provide Commute Options?
• Benefits to employees:– Reduced commuting costs
• Up to $2,700 a year in personal income tax savings
– Increased job satisfaction– Improved health and well-
being– Contribution to air quality
improvements
(Source: Peer-reviewed research from local and international sources)
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• Corporate Benefits– Up to $211 per employee
per year in payroll tax savings
– Recruitment and retention of staff from a larger candidate pool
– Reduced facility costs from parking and office space
– Enhanced corporate standing in the community
An easily accessible business is a more successful business
(Source: Peer-reviewed research from local and international sources)
Increase in productivityDecrease in absenteeism
Increased moraleImproved recruitment
Better retention
1. Why Provide Commute Options?
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• Community benefits:– Improved air quality– Reduced traffic congestion and travel
time– More efficient use of infrastructure
and taxes
1. Why Provide Commute Options?
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• Payroll Tax Savings:– Employer pays no payroll taxes (FICA):
• Social Security - 6.2% of salary• Medicare - 1.45% of salary• Total - 7.65% savings/employee/deduction
– Payments to employees are deductible from employer federal corporate income taxes
1. Why Provide Commute Options?
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2. How to Provide Commuter Benefits?
Three ways to offer transit benefits: A. Pre-tax payroll deduction B. Subsidy, in addition to salaryC. Combination of the two
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2. How to Provide Commuter Benefits?A. Pre-Tax Payroll
Deduction– Employee uses pre-tax
income to pay for transit costs.
– Pre-tax limit is $230 per month
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One employee/year: $211 in payroll tax
savings
Five employees/year: $1,055 in savings
Fifty employees/year: $10,600 in savings
2. How to Provide Commuter Benefits?
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2. How to Provide Commuter Benefits?B. Subsidy
– Employer pays for employee’s transit fare or vanpool expenses through vouchers, transit passes or shuttle programs
C. Combination– Example: provide shuttle
service and pre-tax deductions to employees who use public transit to connect to shuttle
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2. How to Provide Commuter Benefits?•To get started:
1. Survey employees on travel behavior, preferences
2. Research options
3. Find resources/support– SFE provides materials and
support– Third party benefit
administrator
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• Provide and improve choices for employees (to and from work)– Carpooling and Vanpooling
• 511 Rideshare: https://www.ridematch.511.org/SanFrancisco: (provides ridematching services)
• Preferential parking (on employer site)– Transit Passes
• Provide pre-tax transit options or subsidized passes– Biking
• Bicycle benefit can be offered up to $20 a month– Alternative work arrangements or satellite locations
• Telecommuting• Renting satellite office space closer to employee workplaces
– Parking Cash Out• Employees offered subsidized parking are also offered the
cash equivalent if they use alternative travel modes – Emergency Ride Home
• Rebate program to subsidize emergency rides home in lieu of having a personal automobile on the work site
• City of San Francisco reimburses costs of rides of businesses
2. How to Provide Commuter Benefits?
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• Active transportation promotion and infrastructure improvement (at work)– Secure Bike Parking, Bicycle
Amenities• Bike racks/lockers, shower facilities
– Car Sharing/Bike Sharing/Transit Tokens
• Provide employees travel options for meetings to reduce their driving to work
– Cycling/Walking Groups• Supporting active transportation in the
workplace– Walk, Bike, Rideshare to Work
Initiatives • Give employees the chance to become
familiar with bike routes, transit and carpooling to their workplace
2. How to Provide Commuter Benefits?
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3. Services
• SFE can help with setting up programs:– Employer guide
• Sample employee survey• Sample flyer & email announcement• Sample employee enrollment form• Sample employee paycheck insert• Vendor directory
• These are also helpful for complying with the San Francisco Commuter Benefits Ordinance
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• Commuter Benefits Ordinance– Effective January 2009– Goal to reduce drive alone work trips– Who needs to comply?
• SF businesses with 20 or more employees nationwide
– What needs to be offered (at least one of the programs below)?• Pre-Tax Benefit• Employer-Paid Subsidy• Employee Shuttle Service
3. Services
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Annual Compliance Form
3. Services• What needs to be
reported to the City?
– Business’ commuter benefits program
• By April 30th, fill out annual compliance form at
www.CommuterBenefits.org
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4. Upcoming Events• Events are a great way to
encourage your employees to try out different commuting options
– Walk to Work Day (1st Friday of April)– Bike to Work Day (May 12th)
• Bay Area wide event• Prizes for employees who cycle to work
– Rideshare Week (1st Week of October)• Employees get free passes from 511
rideshare for participating– Great Race Challenge (Fall)
• Friendly competition between Bay Area employers to encourage employee use of commute alternatives
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Thank You!
Krute SingaTransportation Demand ManagerDepartment of the Environment
Hotline: [email protected]
CommuterBenefits.org