commuter choice

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Commuter Choice is a federal tax program to encourage GA employees to use transit or vanpool.

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Page 1: Commuter Choice
Page 2: Commuter Choice

CommuterCommuterCommuter Commuter BenefitsBenefits

Page 3: Commuter Choice

Our MissionOur MissionThe Buckhead Area Transportation Management Association (BATMA)

works cooperatively with community partners to improve mobility, accessibility and air quality in Buckhead by sponsoring programs and y q y y p g p gproviding incentives to encourage commuters to take transit, carpool,

vanpool, telework, bike and walk to work.

Over 80 businessesOver 80 businessesOver 80 businessesOver 80 businesses

Over 20 property management firmsOver 20 property management firms

Over 3,000 commutersOver 3,000 commuters

Page 4: Commuter Choice

Hidden Costs of CommutingHidden Costs of Commuting

Page 5: Commuter Choice

Alternative commute options…Alternative commute options…• Carpool• Vanpool• Vanpool• Transit

T l k• Telework• Alternative Work

SchedulesSchedules• Bike

W lk• Walk

Page 6: Commuter Choice

What seems like an endless stream of cars in this photo …

Is only 88 peopleThe equivalent of: 2 Carpools 1 Vanpool 1 Xpress bus1 Xpress bus

Page 7: Commuter Choice

Commuter BenefitsCommuter Benefits

Commuter Choice

Commuter Rewards

Note: The information presented here does not constitute official tax guidance or a ruling by the U.S. Government. Taxpayers are urged to consult with the Internal Revenue Service of the U.S. Department of Treasury or a tax professional for specific guidance related to the Federal tax law.

Page 8: Commuter Choice

Commuter ChoiceCommuter Choice• Federal Tax Code allows employers to provide tax-free bike,

transit, vanpool, and parking benefits to their employees (“q alified transportation fringe” benefits)(“qualified transportation fringe” benefits).

• Tax-free benefits were expanded in 1998 by The Transportation Equity Act for the 21st Century (TEA-21) that amended theEquity Act for the 21st Century (TEA 21) that amended the federal tax code (132-f) to create financial incentives related to employer provided commuter benefits.

TEA 21 was expanded in• TEA-21 was expanded in 2009 with the Federal Stimulus Package to almost double the benefits, and to include bike commuting for the 1st time.

Page 9: Commuter Choice

Commuter ChoiceCommuter Choice• Commuter Benefits have tax advantages because they are not

subject to Federal Income and payroll taxes. This is not a federal t dittax credit.

• Under the tax code employers can offer qualified transportation fringeoffer qualified transportation fringe benefits in three ways: – Employers can cover the cost of

the tax-free transportation fringe benefitbenefit

– Employers can allow employees to reserve income on a pre-tax basis to cover the cost

– Employers can share the cost with employeesp y p y

• Employees can participate in commuter benefits programs only if the programs are offered by their employer.

Page 10: Commuter Choice

Types of Qualified Commuter BenefitsTypes of Qualified Commuter BenefitsTypes of Qualified Commuter BenefitsTypes of Qualified Commuter Benefits

Transit passes – up to $230 Vanpool fares – up to $230

Bike expenses – up to $20 Qualified Parking – up to $230p p g p

Page 11: Commuter Choice

Benefit OptionsBenefit OptionsBenefit OptionsBenefit OptionsEmployer Paid: Employer provides up to $230 aOption 1Employer Paid: Employer provides up to $230 a month for transit and vanpooling costs.

E l T E l TEmployer Tax Benefit

Employee Tax Benefit

Employer pays no payroll taxes on the benefit –making it cheaper than providing a comparable

Employee receives up to $230 a month tax-free to use transit or vanpools for their commute to workproviding a comparable

salary increase.commute to work. Employees do not pay taxes on the value.

(Savings vary, dependent upon employer type – private, federal/government, or non-profit)

Page 12: Commuter Choice

Benefit OptionsBenefit OptionsBenefit OptionsBenefit OptionsEmployee Pre-Tax Deduction: Employer allowsOption 2Employee Pre-Tax Deduction: Employer allows employees to reserve up to $230 a month in pre-tax income to pay for transit and vanpools.

Employer Tax Benefit

Employee Tax Benefit

Employer pays no payroll taxes on the income that is reserved by the employee

Employee saves on income tax, payroll tax, and state tax (GA) Benefit is not treated asreserved by the employee. (GA). Benefit is not treated as taxable salary.

(Savings vary, dependent upon employer type – private, federal/government, or non-profit)

Page 13: Commuter Choice

Benefit OptionsBenefit OptionsBenefit OptionsBenefit OptionsEmployee/Employer Share Costs: Employers payOption 3Employee/Employer Share Costs: Employers pay transit/vanpool costs up to a certain limit and the employee pays for the remainder of costs through pre-tax payroll deduction. Can not exceed $230 monthly limit.

Employer Tax Benefit

Employee Tax Benefit

For the employer paid portion the employer will pay no payroll taxes (cheaper than salary i ) E l

Employee does not pay taxes on the portion of the benefit provided by the employer. E l lincrease). Employer saves

payroll taxes on the portion of the benefit paid for by employee’s pre-tax deduction.

Employee also saves on income/payroll tax by taking a pre-tax payroll deduction.

(Savings vary, dependent upon employer type – private, federal/government, or non-profit)

Page 14: Commuter Choice

Commute Benefits Provide More for LessCommute Benefits Provide More for Less$50 salary increase

EmployerCost $34

pays FICA(7.65%)

Writes off expense for corporate income taxes (40%, federal and state)

Cost $- $20

Employee

+ $4pays federal income tax (28%)

pays state income tax (6%)

$

pays FICA(7.65%)

$50 transit/vanpool benefit

p oyeevalue

- $4 - $14 - $3$29

EmployerCost $30No FICA

Writes off expense for corporate income taxes (40%, federal + state)

- $20Employeevalue $50No FICA No federal

income taxesNo state

income taxes

Slide provided by Best Work Place for Commuters

Page 15: Commuter Choice

Employer ServicesEmployer Services• Free consultation with a nationally recognized

telework / Commuter Choice expert• Provide a company specific alternative

commute option plan p por improve your organization’s green green g gginitiativesinitiatives

• Host free seminarsHost free seminars that help you improve your bottom lineyour bottom line

Page 16: Commuter Choice

Employer ServicesEmployer ServicesEmployer ServicesEmployer Services• BATMA works in

partnership with thepartnership with the RideSmart division of the Atlanta Regional CommissionCommission

• RideSmart can have your organization ride matched

d i di id l id t hand individual ride match letters prepared for all of your employeesy p y

• Guaranteed Ride Home• www.myridesmart.com

Page 17: Commuter Choice

Employer ServicesEmployer Services• Provide you with marketing materials to

encourage the useencourage the use of alternative commute optionsoptions

• Conduct onsite events; lunch and learnslunch and learns, lunch room displays,etcetc.

• As a tenant, our services are freefree to you

Page 18: Commuter Choice

IncentivesIncentivesCash for Commuters

$ $Earn $3 a day up to $100

Pool PerksEarn $20 for two people carpooling

Carpool RewardsEarn $40 or $60 gas cards for

licarpooling

Commuter PrizesEarn $25 Visa gift cardEarn $25 Visa gift card

Vanpool SubsidiesFlat rate of $75, $90, or $100

Page 19: Commuter Choice

It must have been something It must have been something I ate…I ate…

The Guaranteed Ride Home program (GRH) provides t h l l lk bik t k t itcommuters who carpool, vanpool, walk, bike or take transit

to work with up to five free taxi rides home or to their car in the event of one of the following: g

•You or an immediate family member’s illness

•You or your commute partner(s) have to work mandatory unscheduled overtimeunscheduled overtime

•You or your commute partner(s) get sick at work and have to leave early

Page 20: Commuter Choice

BATMA’s EffortsBATMA’s EffortsBATMA s EffortsBATMA s EffortsIn 2008In 2008 44.11 Tons of Emissions Eliminated

+6 t 2007 i f 16%+6 tons over 2007 - increase of 16%

26,361,429 of Vehicle Miles Reduced+4 Million over 2007 - increase of 18%+4 Million over 2007 increase of 18%

Miles reduced equals 1 062 trips

9 Adult Elephants

Miles reduced equals 1,062 trips around the Earth or 410,998 trips

around Interstate 285.

Elephants

Page 21: Commuter Choice

Resourceswww.batma.org

www.commuterchoice.org

www.myridesmart.com

www.bestworkplaces.org

www.commuterrewards.com