Attract and Retain Employees with Commuter Benefits and Customized Employee Transportation
Many companies offer more than just a paycheck to keep their existing employees happy and engaged. Additional employee benefits can also help attract new employees and expand access to labor – especially when transportation options are limited. Employers have a number of options to consider when offering and optimizing their employee benefits and employee transportation program. Your company can start with commuter benefits and then offer subsidies and completely customized employee transportation with vanpools and employee shuttles.
What are Commuter Benefits?
Commuter benefits are typically a pre-tax fringe benefit that companies and their employees can take advantage of to pay for transportation and parking expenses. Companies can pay for their employee’s transit and parking expenses (typically up to $280 per month) as a pre-tax benefit. Both the company and employee pay less in payroll taxes* with potential savings over $200 per year for each employee at your company.
What do Commuter Benefits Cover?
Commuter benefits can pay for an employee’s vanpooling, transit fares, bicycling, and parking expenses that make it easier for them to get to work. These benefits make commuting less expensive and encourage commuters to share rides, use mass transit, and generally reduce their carbon emissions by cutting down on single occupancy vehicle trips.
How Can My Company Start Offering Commuter Benefits?
Companies can easily get started by offering pre-tax commuter benefits to any employee that commutes to work via vanpool, mass transit, or bicycle. Your employees can expense up to $280 per month to cover vanpool commuting expenses and fares on mass transit. Your company can save over $200 for each employee via reduced payroll taxes.
Some companies provide additional subsidies to cover any extra expenses over $280 per month to ensure their employees can safely and easily get to work. This ensures that your employees can easily get to work especially if they don’t have alternative transportation options.
What Else Can My Company Do To Improve Employee Transportation?
Your company can get started with commuter benefits and continue to grow and optimize their employee transportation program as an enhanced employee perk. Here’s some steps to start and grow a personalized employee transportation system.
Analyze Existing Transportation Options
Our employee transportation calculator estimates how much your employees are currently spending to commute and shows potential savings when switching to vanpools.
Employee Commuting Mode Survey
Get started by asking your employees how they commute and what they’d like to improve
Commuter Benefits Awareness
Let your employees know that they can take advantage of commuter benefits by switching to vanpools, carpools, and public transit
Offering Commuter Benefits
Begin pay pre-tax commuter benefits and start saving on payroll taxes
Employee Transportation Planning
Continue to grow employee transportation benefits by planning dynamic vanpool service to existing and new commuters
Fully Customized Transportation Program
Launch an employer-sponsored vanpool program with dynamic scheduling for optimized employee transportation
MagicBus Is Here To Help
Get in touch with the MagicBus team today to learn more about commuter benefits for your employees. If you’re considering offering commuter benefits or want to expand enrollment in your employee transportation program we can help.
The MagicBus platform can help you crowdsource and plan a vanpool program that’s customized for your employee’s commuting patterns.
*Payroll tax rates will vary depending on employee marital status, state taxes, and other applicable taxes and deductions