Providing Commute Choices
to Employees
Krute Singa
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Presentation Purpose
1. Overview of commuter
benefits
2. San Francisco regulations
3. 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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1. Why Provide Commute Options?
• 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
Increase in productivity
Decrease in absenteeism
Increased morale
Improved recruitment
Better retention
An easily accessible business is
a more successful business
(Source: Peer-reviewed research from local and international sources)
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1. Why Provide Commute Options?
• Community benefits:
– Improved air quality
– Reduced traffic congestion and travel time
– More efficient use of infrastructure and
taxes
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1. Why Provide Commute Options?
• 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
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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 salary
C. 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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2. How to Provide Commuter Benefits?
One employee/year:
$211 in payroll tax savings
Five employees/year:
$1,055 in savings
Fifty employees/year:
$10,600 in savings
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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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2. How to Provide Commuter Benefits?
• 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
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2. How to Provide Commuter Benefits?
• 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
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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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3. Services
•
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
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3. Services
•
What needs to be
reported to the City?
–
•
Annual Compliance Form
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 Singa
Transportation Demand Manager
Department of the Environment
415.355.3734
[email protected]
Hotline: 415-355-3727
[email protected]
CommuterBenefits.org
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