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Home » News & Resources » Commuters/Commuting » Commuter Benefits and Its Importance

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Commuter Benefits and Its Importance

Commuter benefits give workers the chance to use tax-free dollars on commuting costs. The companies that offer these benefits also save money by reducing payroll taxes. According to a survey Robert Half reported, about 23% of employees would quit a job due to difficult commute, while 85% would get a pay cut for an easier commute. If a company provides these benefits, an employee is more likely to stay with the company longer.

Commuter Benefits and Its Importance

Published: 11/05/2021

When people are considering a great job opportunity, one of the biggest decision making points are benefits and location. Commuter benefits can help both points.

These benefits give workers the chance to use tax-free dollars on commuting costs. The companies that offer these benefits also save money by reducing payroll taxes.

According to a survey Robert Half reported, about 23% of employees would quit a job due to difficult commute, while 85% would get a pay cut for an easier commute. If a company provides these benefits, an employee is more likely to stay with the company longer.

The number of companies offering commuter benefits to its employees have increased significantly. It helps them find candidates who may not have the means to commute on a daily basis. In the long run, these benefits help both the employer and employee save money. Also, helps with employee retention and loyalty.

Some major cities also have benefit ordinances in place; such as Washington DC. The DC Commuter Benefits Law requires all District companies with 20 or more employees to offer benefits for transit to their employees.

What benefits are included?

These benefits include public transportation (bus, train systems), ridesharing, vanpool and even parking in public transit areas. Using public transportation is beneficial for all; as there is less impact to the environment, employees can save on gas and money, and wear and tear on their personal vehicles.

For companies, these benefits can help attract new talent, retain current employees, and also save them money by reducing payroll taxes.

With COVID-19, many workers shifted into remote work, hindering these benefits; as many chose to stay home to decrease the spread. Companies that offer commuter benefits have seen many cancellations of these benefits since March 2020, and at the time of this post, things are going back to a somewhat normal. More employees are returning to work onsite.

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