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> Commuter Check Commuter Check Information
The Commuter Check is a tax-free Commuter Benefits program that allows employees to save on qualified commuting expenses. Commuter Check vouchers are used to pay for public transit, vanpooling, and parking. Available in any dollar denomination (including cents), they are redeemable across the country. Commuter Check was developed to help businesses promote public transit use, reduce traffic congestion and protect the environment. With Commuter Check, commuters can save 40% in after-tax value, while employers save 10% or more in payroll-related costs.
Commuter Check is simple to use. Employees redeem Commuter Check vouchers for transit tickets, tokens or passes from participating transit operators and commercial parking vendors. They are conveniently redeemed at staffed sales offices and retail sales outlets for any type of prepaid fare, just like cash payments. Commuter Check is also accepted by vanpools. However, vouchers cannot be exchanged for cash or used for any purchase other than those specified above.
No organization is too large or too small. All types of employers from single person offices to large businesses with multiple locations, from any industry in the private, public and non-profit sectors can participate in Commuter Check. It allows any size company to add to the benefits package without adding cost.
Commuter Checks are vouchers redeemable for transit passes, tickets, tokens; vanpool fares; and parking expenses. Employers provide them tax-free to employees as a substitute for taxable salary or as a supplemental benefit (subsidy), or a combination of the two. Commuters can save 40% in after-tax value, while employers save 10% or more in payroll-related costs. In addition to saving money, using Commuter Check sends a strong message to employees, customers and constituents that an organization is environmentally-conscious – promoting the use of public transportation to help fight climate change and support global sustainability. Commuter Checks are available in various denominations up to $115 per month for transit and up to $220 per month for parking, and are valid for 13 months from date of issue, which gives the employees flexibility to use them as needed. They are redeemable anywhere transit or parking vouchers are accepted nationwide. Note that employees cannot receive cash back when redeeming vouchers, so they must specify the correct denomination(s) for the fare products they desire. If they buy fare products that cost more than the value of their Commuter Check, participants have the option to pay the difference. Across the country, thousands of employers use the Commuter Check Benefit Solutions program, providing hundreds of thousands of employees with vouchers redeemable for passes and tickets for bus, train, ferry, vanpools, and parking operators. It's a great employee benefit – every month, more employers are enrolling. Federal law allows pre-tax payroll deductions of up to $1,380 for transit expenses per year per employee and up to $2,640 for parking per year per employee. By offering Commuter Check as a pre-tax payroll deduction employers save on taxes, up to $115 per participant annually, while the employees save up to $500 on transit expenses.
Transit fringe benefits have become increasingly popular over the past ten years. The first legislation on transit benefits appeared in 1984. The Metropolitan Transportation Commission started the Bay Area Commuter Check program in September 1991 in partnership with Commuter Check Services Corporation. Nearly 2000 employers of all types and sizes in the private, public and non- Profit sectors have purchased Bay Area Commuter Checks and over 35,000 employees receive them every month.
In a Bay Area study, Commuter Check was found to have increased transit use by an average of 30% at participating employers, and in some cases, by over 100%. Over 1/3 of the employees surveyed increased transit use by an average of 3.24 trips per week. The Bay Area Commuter Check program received a Governor's "Keep California Moving" Award in 1992 and an award from the American Lung Association in 1997. The program has also received marketing grants from the Bay Area Air Quality Management District.
Detailed information on Commuter Check, including how it operates, its benefits and ordering information, can be found at www.commutercheck.com.
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