Enhance Your Commuter Benefits

Do you provide commuter benefits to your staff? Have you ever considered expanding them? Offering commuter benefits to your employees not only helps them afford their commutes, it also is required by law if you have over 20 employees in DC. Read on to learn more about the perks of revitalizing your commuter benefits, ways to help your employees commute, and goDCgo’s complimentary services for employers. 

Understanding the DC Commuter Benefits Law

The DC Commuter Benefits Law, passed by the DC Council as a part of the Sustainable DC Omnibus Amendment Act of 2014, requires organizations and businesses with 20 or more employees in the District to offer commuter benefits. Similar to laws in San Francisco, New York, and other metropolitan cities, this measure helps reduce rush hour demand, improve air quality, and expand access to public transit. 

To comply with the law, employers must offer one or more of the following to their employees:

1. Employee-paid, pre-tax benefit: Allow employees to set aside up to $325 per month of income on a pre-tax basis to cover public transit or vanpool costs.
2. Employer-paid, direct benefit: Offer a tax-free subsidy of up to $325 per month for transit or vanpools.
3. Employer-provided transportation: Provide a free shuttle or vanpool service to your employees. 

Non-compliant organizations may be subject to fines of up to $800 per employee.

Providing commuter benefits at your workplace is essential to comply with the law and avoid hefty fines. For a full overview of the law and your compliance options, goDCgo’s Employer Commuter Benefits Toolkit is a great place to start. 

Go Above and Beyond

In addition to the benefits you can provide to comply with the law, there are several other types of commuter benefits that may be a good fit for your team.

1. Capital Bikeshare (CaBi) Corporate: If your workplace is located near a Capital Bikeshare station, CaBi Corporate may be right for you. Through this program, employers can offer their employees a fully or partially subsidized Capital Bikeshare annual membership to use for commuting and personal trips. Fill out the enrollment form to start providing this benefit, or, if you’re still on the fence, get a free trial through goDCgo’s Try CaBi program. 
2. Bicycle Benefit: Another way to support employees who bike is by offering a monthly benefit for bicycle-related expenses. This can be administered by either reimbursing for monthly expenses or providing a monthly voucher for local bike shops. This benefit is treated as taxable income for the employee. Learn more about this option here. 
3. Car-sharing Membership: Have employees who need cars for occasional work responsibilities, but want to commute by transit, bike, or walking? Subsidizing car-sharing memberships for your employees is a great way to give them access to shared vehicles throughout the city without needing to drive to work. Zipcar and Free2Move both have business membership programs that allow employers to help their employees use these services. 

Why Enhance Your Benefits?

Even if you’re not required to comply or are already compliant with one benefit option, enhancing your commuter benefits can yield positive results at your workplace.

Reduced Cost and Tax Savings

With pre-tax commuter benefits, employees can save up to 40 percent on their commute costs by reducing their taxable income and the out-of-pocket expense of commuting. Employer-paid subsidies can help employees save even more by greatly reducing or even eliminating the cost of getting to work. 

Commuter benefits don’t only help the employee—they can yield savings for your organization, too! On average, employers who offer pre-tax benefits see up to 9 percent savings on FICA payroll taxes.

Recruitment and Retention

Having robust employee benefits increases job satisfaction and improves employee retention, and commuter benefits are no exception. Helping your employees pay for their commutes also improves their health, especially when benefits are used for active transportation modes like biking. Finally, offering commuter benefits reduces your team’s stress levels about travel-related expenses, contributing to a happier, more productive workplace.

Sustainability and Recognition

What’s better than doing something that makes a positive impact on your community? Getting recognized for your good deeds! By offering commuter benefits that promote sustainable transportation, improve air quality, and reduce congestion, your organization is bound to be perceived as forward-thinking and committed to creating a better planet. 

Expanding your commuter benefits makes you more competitive for elite designations, such as Best Workplaces for Commuters and the goDCgo Transportation All-Star program. The Transportation All-Star program recognizes District organizations for their commitment to sustainable transportation and includes perks such as free promotion for your organization and an invite to our exclusive awards ceremony. On a national scale, strong commuter benefit programs can also help your organization earn Leadership in Energy and Environmental Design (LEED) credits to work towards LEED certification. 

Get Started

Need customized assistance with expanding your commuter benefits offerings? goDCgo is available to help you comply with the law, choose the best option for your workplace, and contribute to your employees’ satisfaction. Reach out to us at [email protected] or schedule a meeting with our Employer Services team to get started.