A press release issued Sept. 25, 2007 by TransitCenter, Inc., a nonprofit organization that promotes the use of mass transit, included a data calculation error, having cited 132 percent growth in commuter benefits since last year. TransitCenter today announced a correction to that finding, that growth of commuter benefits among employers in major metropolitan areas increased instead by 57 percent this year, from 28 percent in 2006 to 44 percent in 2007. Other survey findings are unchanged.
The 2007 Commuter Impact Survey was independently fielded to 245 U.S. human resource professionals across public, private, nonprofit and government organizations at the June 2007 Society for Human Resource Management (SHRM) Annual Conference & Exposition as well as online. Among the findings:
- Deployment of tax-free commuter benefits by U.S. employers in major metro U.S. markets has grown 57 percent in the last year, from 28 percent in 2006 to 44 percent in 2007.
- Among all employers surveyed, commuter benefits are the number-one planned addition to benefits packages in the next year, with 17 percent of employers saying they intend to implement this pre-tax program.
- Among all employers surveyed, nearly two-thirds of employers say they
have developed initiatives to support the environment and curb global
warming, pointing to commuter benefits as the leading way they are
responding:
- 28 percent offer commuter benefits specifically as a means to encourage the use of mass transit
- 22 percent currently partner with a green organization
- 20 percent have established an internal policy for energy conservation
- 20 percent are developing products and services that are not detrimental to the environment
- 19 percent are teaching employees how to use less energy
- 17 percent are pursuing a greener supply chain approach
About Tax-Free Commuter Benefits
Since 1993, employers have been able to offer employees a tax-free benefit for commuting by transit and eligible vanpools or to pay for commuter parking primarily at transit or ridesharing locations under IRS tax code section 132(f). Tax-free commuter benefits can be structured as an employee-funded tax-free payroll deduction; as an employer-funded benefit; or the costs can be shared by employer and employee. The benefit can be delivered in the form of transit provider-specific passes, universally accepted vouchers and terminal-restricted debit cards, or through a reimbursement model under specific conditions defined by the IRS. Current IRS limits allow for participants to set aside up to $110 a month tax-free to pay for transit and vanpool commuting costs, and up to $215 for commuter parking.
About TransitCenter
A nonprofit corporation, TransitCenter specializes in tax-free commuter benefits, transit information and assistance for employers and commuters nationwide. TransitCenter introduced the nation's first tax-free commuter benefits program in 1987 to encourage more people to use mass transit to protect the environment, preserve natural resources and improve the quality of life where people work and live. Today, more than 11,000 employers and 500,000 employees participate in TransitCenter's TransitChek commuter benefits programs as a convenient, money-saving way to pay for commuting.
For 20 years, TransitCenter has worked hand-in-hand with transit providers, communities and employers to make mass transit more accessible. Independent since 2001, TransitCenter was founded in 1986 as a joint alliance of leading public transit providers. A deep heritage in transit drives TransitCenter's continued commitment to bringing new innovations to employers and transit riders that participate in TransitChek tax-free commuter benefits programs. Learn more by visiting www.transitcenter.com.