How Commuter Benefits Save Money for Businesses and Employees
Commuter benefits let employees use pre-tax dollars for transit and parking, helping them save while reducing employer payroll taxes. Easy to implement and low-cost, this perk boosts morale and retention. Contact Benton Oakfield to get started.
Commuting in and around major cities isn’t just a matter of time and traffic—it’s also a matter of money. For both employers and employees, the costs of daily transit can add up quickly. That’s where commuter benefits come in—a low-cost, high-impact solution that can make a big difference for your bottom line and for employee satisfaction.
What Are Commuter Benefits?
Commuter benefits allow employees to pay for work-related transportation expenses—like subway, bus, train fares, parking, and even vanpooling services like UberPool and Lyft Line—using pre-tax dollars. This reduces their taxable income and puts more money in their pockets each month. It’s a simple way to give employees a raise without raising salaries.
How It Works
Once your business signs up for a commuter benefits program through a provider like Benton Oakfield, employees receive a dedicated debit card linked to their commuter benefit account. Each month, they can contribute pre-tax funds to this account (up to IRS monthly limits), which can then be used for qualified commuting expenses.
Employees can:
- Swipe their card at the transit station to buy daily or monthly tickets
- Use transit authority websites or apps to reload passes
- Check balances anytime with a dedicated commuter benefits mobile app
Why Employers Love It
Offering commuter benefits is not only inexpensive—it also saves employers money. Because employees are setting aside pre-tax income for commuting, employers pay less in payroll taxes. And by making it easier for employees to get to work affordably, companies see improvements in morale, punctuality, and retention.
Simple to Implement
Whether your employees are daily subway riders or long-haul train commuters, setting up a commuter benefits plan is straightforward. Benton Oakfield works with businesses of all sizes to tailor solutions that meet their workforce’s needs.
Once enrolled, everything from employee onboarding to ongoing account management is streamlined, with app access, easy card use, and automatic monthly contributions.
Great for Remote-Optional and Hybrid Teams
Commuter benefits aren’t just for daily travelers. Hybrid and remote-optional teams can still take advantage of this benefit on the days they do commute. That flexibility helps your business remain competitive in today’s evolving workplace environment.
Start Saving Today
If you're looking for a simple, tax-advantaged way to support your team and improve your benefits offering without a significant financial outlay, commuter benefits should be at the top of your list.
Contact Benton Oakfield today to learn more about setting up a commuter benefits plan that works for your team and your business.