goDCgo Employer Services
Meeting your employees’ unique transportation needs has never been easier!
goDCgo’s award-winning Employer Services team provides complimentary consultation to businesses starting or enhancing their commuter benefits programs. From transit benefits to secure bike parking to telework, we make it easy for your employees to choose sustainable, affordable and healthy ways to get to work.
Alert: Metro’s year-long SafeTrack campaign will affect your employees’ commutes. Listen to our SafeTrack Employer Webinar to plan ahead and help your organization operate smoothly through the disruptions.
Additional SafeTrack information can be found at safetrack.godcgo.com
DC Commuter Benefits Law
As of January 1, 2016, employers with 20 or more employees in the District of Columbia are required to offer pre-tax or subsidized commuter benefits for use on Metro, buses, vanpools and other forms of mass transit.
The DC Commuter Benefits Law was included in the Sustainable DC Omnibus Amendment Act of 2014 to expand transit benefits access to Washington, DC employees and to make the District - in one generation - the healthiest, greenest and most livable city in the United States.
What are the employer options for the DC Commuter Benefits Law?
Benefit Option #1: Employee-paid pre-tax contribution
Benefit Option #2: Employer-paid direct benefits
Benefit Option #3: Employer-provided shuttle or vanpool
For more information and resources, please visit our DC Commuter Benefits Law page.
What are Commuter Benefits?
Commuter Benefits are transportation fringe benefits regulated under Section 132(f) of the IRS Tax Code, allowing employees to reduce their monthly commuting expenses for transit, vanpool, biking and parking. Employers can offer employees a range of pre-tax or subsidized transit benefits, as well as a host of related perks such as secure bike parking and assistance finding a carpool.
What Types of Tax-Free Commuter Benefits are Available?
Commuters can set aside pre-tax dollars for use on Metro, buses, vanpools and other forms of mass transit. Employers may choose to subsidize commuters’ transit fares or mix and match with pre-tax fares. The IRS allows a total of $255/month to be excluded from each employee’s taxable income.
Employers can reimburse bicycle commuters up to $20/month (or $240/year) for bicycle-related expenses or provide a $20 voucher each month redeemable at local bike shops. Please note: a commuter can only receive EITHER the transit benefit OR the bicycling benefit each month.
Additional Taxable Benefits
Employers may offer a taxable walking benefit to employees who walk to work. Additionally, many employers provide commuter benefits greater than the IRS limits and simply withhold taxes on the portion over the limit.
View our list of complimentary services for more ideas to help make your employees’ commutes easier than ever.
Why Offer Commuter Benefits?
Reduced Cost and Tax Savings
Recruitment and Retention
- Taxable income is reduced, which translates to a travel savings of up to 40 percent for individual commuters. As a result, business payroll taxes decrease, so you may see up to 9 percent savings for each employee participating in the benefit.
- Benefit is low cost or negligible cost for companies to offer
- Employees save money by reducing the out-of-pocket expense of commuting
- The more options an employee has to commute to work, the fewer parking spaces are needed.
- Stay competitive in a region where 62% of commuters (in DC-Arlington-Alexandria) have access to subsidized transit benefits as part of their benefits packages [State of the Commute 2013]
- Cost-effective tool for increasing job satisfaction and helping recruit and retain employees
- Employees who take transit to work are healthier than those who drive alone and experience less stress
- Be seen by the public, competitors, current and future employees as forward-thinking and sustainability-minded
- The award for Best Workplaces for Commuters is given to organizations that offer commuter programs and meet the National Standard of Excellence criteria
- The US Green Building Council (USGBC) provides Leadership in Energy and Environmental Design (LEED) credits for sustainable employee transportation programs
- Directly decrease traffic congestion, improve air quality and make our city a better place to live and work by encouraging employees to use alternative transportation
Download goDCgo’s Commuter Benefits Toolkit for employers
Become a goDCgo client today: