1 Providing Commute Choices to Employees Krute Singa

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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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• 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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• 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


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• Community benefits:– Improved air quality– Reduced traffic congestion and travel

time– More efficient use of infrastructure

and taxes


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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


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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


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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


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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


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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

[email protected]

Hotline: [email protected]

CommuterBenefits.org

Documents

1 Providing Commute Choices to Employees Krute Singa