There are many ways to implement or improve an existing commuter benefit program at little or no cost – offering certain employee benefits can actually save your company money.
Under the Transportation Equity Act, IRS code 132(f), and California state law, employers are allowed to offer payroll tax savings for transportation assistance up to $230 a month per employee for transit passes or vanpool vouchers. Employers also have the option of subsidizing part of their employees’ commuting costs and allowing employees to pay for the remainder – up to the $230 monthly limit – with pre-tax dollars.
Qualified Bicycle Commuting Reimbursement. The 2008 Energy Act added “qualified bicycle commuting reimbursement” to the list of qualified transportation fringe benefits. In 2009, any employer may reimburse an employee up to $20 per month tax free for reasonable expenses incurred by the employee for the purchase of a bicycle and bicycle improvements, as well as repair and storage if the bicycle is regularly used for travel between the employee's residence and place of employment.
For more information on tax benefits visit: Employer's Tax Guide to Fringe Benefits IRS code 132(f). Please consult your tax advisor for more details.
Employers and employees can lease a van through iCommute’s contracted vanpool vendors and receive up to $400 per month to help offset the cost of the lease. On average, vanpool participants cut their commute costs by more than one thousand dollars per year. For example on a 50-mile round trip, a vanpooler will typically save $4,400 a year over driving alone.
Employers can buy transit passes in bulk at a discounted rate through the Metropolitan Transit System EcoPass Program and pass those savings along to employees.
ECO PASS Program Pricing
For more information, call 511 and say “iCommute” or e-mail icommute@sandag.org.