Providing Commute Choices to Employees

1. Providing Commute Choices to Employees Krute Singa

2. Presentation Purpose Overview of commuter benefits San Francisco regulations Support and how to promote the program

3. Presentation Overview Why Provide Commute Options? How to Offer Commuter Benefits? Services Upcoming Events

4. 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

5. 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)

6. 1. Why Provide Commute Options? Increase in productivity Decrease in absenteeism Increased morale Improved recruitment Better retention • Corporate Benefits • Up to $211per 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)

7. 1. Why Provide Commute Options? • Community benefits: • Improved air quality • Reduced traffic congestion and travel time • More efficient use of infrastructure and taxes

8. 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

9. 2.How to Provide Commuter Benefits? Three ways to offer transit benefits: • Pre-tax payroll deduction • Subsidy, in addition to salary • Combination of the two

10. 2.How to Provide Commuter Benefits? • Pre-Tax Payroll Deduction • Employee uses pre-tax income to pay for transit costs. • Pre-tax limit is $230 per month

11. 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

12. 2.How to Provide Commuter Benefits? • Subsidy • Employer pays for employee’s transit fare or vanpool expenses through vouchers, transit passes or shuttle programs • Combination • Example: provide shuttle service and pre-tax deductions to employees who use public transit to connect to shuttle

13. 2.How to Provide Commuter Benefits? • To get started: • Survey employees on travel behavior, preferences • Research options • Find resources/support • SFE provides materials and support • Third party benefit administrator

14. 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

15. 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

16. 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

17. 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

18. 3. Services Annual Compliance Form • What needs to be reported to the City? • Business’ commuter benefits program • By April 30th, fill out annual compliance form at • www.CommuterBenefits.org

19. 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

20. Thank You! Krute Singa Transportation Demand Manager Department of the Environment 415.355.3734 krute.singa@sfgov.org Hotline: 415-355-3727 commuterbenefits@sfgov.org CommuterBenefits.org