More than 700 companies and organizations and nearly 14,000 employees now participate in Commuter Advantage -- a unique opportunity for employees to enjoy an added discount on public transportation fares.
Average employee savings, transit vs. driving
- Average Savings: $9,072, based on AAA Statistics
- Annual Savings with Commuter Advantage: $354, includes FICA of 7.65 percent, Federal taxes of 28 percent and State taxes of 5 percent
- Parking Fees Avoided: $1,125, based on median downtown rates
- Cost of 12 Monthly Park-N-Ride Passes: $1,260
- Annual Total Savings: $9,291
Other employee benefits of public transit
- Enhances environmental quality.
- Saves energy
- Reduces traffic congestion
- Arrive at work less stressed out
- More time during AM commute to read, think, and plan for the day ahead.
- Increases disposable income and buying power, thereby stimulating the local economy with no increase in compensation.
All that, and employers get the competitive edge they need in competitive labor markets.
Commuter Advantage is easy to implement and manage. Made possible by a provision of the 21st Century Transportation Equity Act of 1998, program rules have been established by the Internal Revenue Service.
Guaranteed Ride Home
Riders participating in Commuter Advantage receive a guarantee. If an employee must leave work early to address a family emergency, or has to stay late to get that important proposal out on time, RTA guarantees a ride home - by bus, cab, or special dispatch vehicle.
Employees in Commuter Advantage are provided a toll-free number to RTA's emergency dispatch operations. If no RTA vehicles are in the area, a cab can be used, and RTA will reimburse the rider up to $35. This service is available throughout the year, and can be used up to four times, providing employees with the peace of mind that they won't be stranded when the unexpected happens.
How pre-tax transit benefits work
- Employees enroll in payroll deduction plans to prepay transit fares on a before-tax basis.
- Employees save on FICA and Federal and State payroll and income taxes on the amount established for transit fare media purchase. (See Savings Estimator)
- Employer's payroll cost is reduced. Payroll taxes do not apply to the amount set aside, since it's treated as a benefit.
WageWorks is the nation's leading provider of commuter benefits. The program is designed to reduce administration with easy on-line ordering and management, and free home delivery of transit passes.
You can save up to 40 percent on your commute, and your employer can save thousands in payroll taxes.
- Save money, because Commuter Advantage allows them to purchase transit fare with pre-tax dollars. Employees no longer have to pay for gas, parking and other commuter-related costs.
- Save time, because the passes are delivered to the workplace.
- Provides employees with a peace of mind with the Guaranteed Ride Home.
- Saves money. For every dollar saved by the employee, the employer's FICA, federal, and state income taxes are reduced.
- Increases employee moral due to the money saved by participating in Commuter Advantage.
- Retains productive employees who choose public transportation.
- A no-cost benefit that makes a great perk for the Human Resources Department to offer to new and existing employees.