CommuterCommuterCommuter Commuter BenefitsBenefits
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
Hidden Costs of CommutingHidden Costs of Commuting
Alternative commute options…Alternative commute options…• Carpool• Vanpool• Vanpool• Transit
T l k• Telework• Alternative Work
SchedulesSchedules• Bike
W lk• Walk
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
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.
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.
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.
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
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)
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)
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)
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
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
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
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
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
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
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
Resourceswww.batma.org
www.commuterchoice.org
www.myridesmart.com
www.bestworkplaces.org
www.commuterrewards.com