Environmental concern in the workplace is finding its way to the somewhat
unexpected area of employee benefits. Recent surveys indicate that employers
are updating their benefits programs to encourage employee activities that
reduce greenhouse gas emissions. In fact, commuter benefits are fast-becoming
employers’ leading initiative to help curb global warming.
Commuter benefits are not new to the benefits arena, but are rising to the
fore as employers increasingly focus on the environment, enhancing workplace
productivity, and supporting employees with their cost of commuting. Developed
20 years ago by the nonprofit organization TransitCenter, Inc. to reduce
traffic congestion and air pollution, commuter benefits are now the number-one
planned addition to employers’ benefit packages, according to the
2007 TransitCenter Commuter Impact Survey. The survey finds that today,
44 percent of employers in major U.S. markets offer a program, up 57 percent
from 2006. And of the nearly two-thirds of employers that say they have
green initiatives underway, commuter benefits rise to the top, with 28 percent
saying they are implementing a program to encourage employees to use mass
transit rather than drive to work.
How Commuter Benefits Work
Under the Internal Revenue Code, it is possible to use up to $110 a month
tax-free to pay for mass transit and vanpool commuting costs, and up to
$215 a month for commuter parking. Employers can offer the benefit as an
employee-funded, pre-tax payroll deduction or as an employer-provided tax-free
fringe benefit. Participants can achieve tax savings equivalent to 30 to
40 percent of their out-of-pocket commuting expenses. Offering a commuter
benefits program can also help employers lower their payroll taxes.
Getting Cars off the Road
Commuter benefits programs have a proven, positive influence on mass transit
ridership. A 2005 report issued through the Transportation Research Board
of the National Academies finds that employing commuter benefits resulted
in up to a 60 percent increase in the number of mass transit riders among
benefits recipients.
Using mass transit instead of driving has positive effects on the environment,
the economy and overall quality of life. In 2005, mass transit use in the
U.S. reduced carbon emissions by over 6.9 million metric tons and saved
1.4 billion gallons of gasoline, according to the American Public Transportation
Association (APTA). The Texas Transportation Institute reports that mass
transit saved 541 million hours of travel time in 2005.
This year, APTA revealed that using mass transit is the most significant
contribution an individual can make in reducing one’s carbon footprint.
Riding mass transit instead of driving to work eliminates on average 4,800
pounds of carbon per year. This is almost twice the carbon savings achieved
from adjusting home thermostats, more than 10 times that of using lower-wattage
light bulbs, and 14 times the savings from switching to a high-efficiency
appliance.
A Simple Way to Make a Significant Difference
We all have a stake in the environmental future. As employers, we can change
how we do business, reach our customers and structure our products and services
to pave the way for a greener tomorrow; so too can we evolve our individual
practices. From reducing traffic congestion in our communities, to converting
more employees from drivers into mass transit riders, commuter benefits
can be a simple way to take an environmentally and fiscally friendly step
forward.
Larry Filler is the president and CEO of TransitCenter, Inc. |
