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Clarity Benefit Solutions Discusses the Importance of an Employee Commuter Benefits Program
  • USA - English


News provided by

iReachCompany

Jul 03, 2018, 05:00 ET

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NEW YORK, July 3, 2018 /PRNewswire-iReach/ -- Clarity Benefit Solutions discusses the importance of an employee commuter benefits program.

A commuter benefits program has a host of benefits for employers and employees alike. First and foremost, since commuter benefits plans are exempt from payroll and federal income taxes, they save both employers and employees money. These programs were originally established to foster the use of public transportation by permitting employers and employees to utilize pre-tax dollars to pay for an array of commuting expenses via a pre-tax, employee-paid payroll deduction; a tax-free, employee-paid subsidy; or a combination of both methods. Employees also save on payroll tax payments since commuter benefits are considered tax-free and are not employee earnings. An added bonus is that employees do not have to pay income taxes on the funds they set aside to pay for these commuting expenses, which can add up to a 40 percent savings on the cost of their commute.

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Transportation expenses can add up for employees. Employers who are invested in helping employees offset those expenses will make their employees feel valued. It can also be a powerful leveraging tool for an employer to attract fresh new talent. With unemployment numbers the lowest they have been in years, it will become more challenging to recruit quality employees. Progressive employers can present a commuter benefits plan to potential employees to separate themselves from the competition.

Employers with a commuter benefits program show that they are concerned about complying with local ordinances. Metro cities across the country are passing local ordinances that require businesses with a certain number of employees offer pre-tax commuter benefits. And, since the programs are becoming successful, other metro areas are likely to follow suit.

These programs can also be a boon to the environment. When employees are offered a commuter benefits program, they may be more likely to make the decision to take public transportation, carpool, or bike to work and decrease the number of cars on the road. This not only reduces the carbon footprint, it shows an employer is invested in the community they are working in.

About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.

Media Contact: Calvin Clark, Clarity Benefit Solutions, 732-428-8272, [email protected]

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

 

SOURCE Clarity Benefit Solutions

iReach LastName, iReachCompany, 111-222-3333, [email protected]

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