You pay your employees well. But what if your HR predicts that your competitive advantage as an employer could still shift because competitors offer more in disposable income. We are quickly informing companies in New York, San Francisco and DC about the hefty fine for non-compliance with the Transit Ordinance.
What is The Transit Ordinance?
Companies with over 20 full time employees in New York and DC are obligated by the law to offer Transit passes to employees, or otherwise subject to a fine. In San Francisco, the law fits companies with over 50 employees. Beginning July 1st 2016, businesses with over 20 full time employees in New York had a 90-day period to correct the violation. Though initially $100, the rate of penalty changed thereon in New York. IRS regulations therefore are not only unique to each State, but prone to change.
Why do New York, San Francisco and DC companies outsource this function?
Because Time is Money. Coincidentally, penalty rates change when companies are encircled by an important decision. Management would rather divert their time to retention programs, efficient onboarding and expansion than tracking IRS regulations. And rightfully so – outsourcing is preferred both in time and money.
Simplified Compliance: Our Commuter Benefits Plan simplifies compliance by adjusting your payroll with the Transit Ordinance.
Why is the rest of America offering a Commuter Benefits Program?
1. Dual Employer-Employee Benefits:
Your top competitor may imitate you shoulder to shoulder, but miss the cause of employee retention. Why do employees with this benefit feel motivated?
- Tax on income is a disincentive. Commuter Benefits are pre-tax, meaning higher disposable income for your employee at no additional cost for you. With this, they can save up to 40% in transport. You’re essentially telling your employee ‘it occurred to me that you shouldn’t pay out of your pocket to get to work’. In the 2010 Monster Survey, 87% of employees rated an ‘employer that truly cares about the well-being of its employees’ as the highest ingredient to motivation. This calls for genuine reciprocation from employees.
- No ‘use it or lose it’ policy to inconvenience employees as the funds will rollover to the next month.
- All transactions are done through 1 Debit Card. This makes monthly rollover easier, as well as physical handling of the card. The employee has control over the card.
2. Employer Benefits:
- Employer saves 10% in Payroll Tax: At first thought, it appears that a benefit for employee would be a cost for employer – surprisingly, quite the contrary. Instead, company savings increase with enrollment! These savings can be injected into critical business decisions.
- Reduced Administrative Expenses: As you outsource the worries of staying in-line with regulations, designing a set- up, and expense management to us, you’ll save up on these expenses both in time and money.
- Streamlined Payroll Efforts: Our benefits plan integrates into your very own payroll system and streamlines the process for your HR, making it easy and cost effective.
- Monthly Enrollment: With monthly enrollment, employers can test out the plan and have better control over continuation.
- Simplified Compliance: Say a regulation shows up in your State as well. We’ve got it covered for you.
3. Environmental & Health Benefits:
- Environmentally Green: With use of public transport, the environment becomes collectively sustainable. In fact, DC Transit Ordinance was passed to make DC the ‘healthiest, greenest and most livable’.
- According to the US Center of Disease, 22 minutes of moderate physical activity a day lowers risk of hypertensive diseases and joint back problems. The latter is particularly essential for businesses where employees sit on a chair for long periods.
We realize the advantages of a Commuter Benefits Plan and the complexities in self-designing and running it. That's exactly why we offer it to employers.