Transit
What are the benefits to me as an employer?
Employers who offer transit benefits to employees reap rewards from reduced employee absenteeism, reduced employee turnover, and potential savings on employer payroll taxes. Transit (and vanpool) benefits can be a low-cost way for employers to offer an added benefit to employees through options such as employer-paid transit commuter benefits or employee-paid pre-tax salary deductions. If you currently pay for or subsidize your employees' parking costs, your company can reap significant savings.
What can my company do?
- Survey employees to determine interest in a transit benefit system, making sure to accurately represent potential savings to employees.
- Explore the possibility of providing shuttle service to and from the nearest FrontRunner or TRAX station, depending on the location of your business. Coordinate with other employers near you to see if they are already providing this service or have interest in providing it and sharing in the costs.
- Talk with your HR representatives or your accountant about the federal tax code allowance for contributing up to $230/month to employees' transit benefits tax free.
- Contact UTA to determine how best to implement an employee transit benefit.
- Offer employees a Guaranteed Ride Home benefit. This can be accomplished relatively inexpensively by simply paying for cab fare when an emergency or sickness arises. In reality, Guaranteed Rides Home are not often used by employees and the cost of providing this security is minimal.
Case Study: University of Utah, Salt Lake City, UT
During the early 1990s the University of Utah began facing the challenge of providing parking for its increasing student enrollment. To meet the demand, the University partnered with UTA to institute its "Ed Pass" program providing free bus passes to students. Today the Ed Pass program has expanded to include TRAX light rail and most recently FrontRunner commuter rail. The program remains the cornerstone of the U's alternative transportation efforts. In a November 2007 survey conducted by Valley Research, the program's success continues to grow:
- Almost 80% of students, faculty and staff have obtained a UTA Ed Pass.
- Almost 60% of students, faculty and staff have used their UTA Ed Pass to commute to the U.
- Approximately 29% of students, faculty and staff use UTA to commute to campus each day.
- Approximately 47% of students, faculty and staff commute to campus via alternative transportation (UTA, shuttle, bike, walk or carpool).
For links to articles discussing University of Utah's Ed Pass program click here. (Link to pdf U of U transit success - in your pdf folder)
Source: Auxiliary Services, University of Utah
Case Study: ATK Aerospace Structures, Clearfield, UT
ATK Aerospace Structures' has entered into an agreement with the Utah Transit Authority to provide ECO Passes to all employees at its Clearfield location. This program has been extremely successful; approximately one-half of ATK's Clearfield employees are participating in the ECO Pass program, with most utilizing the FrontRunner commuter rail. This program has also encouraged ATK's employees to embrace a healthier lifestyle by incorporating walking or bicycling into their daily routine. The wireless service on the train allows employees to utilize their travel time efficiently to and from work. Participating employees have significantly reduced commuting costs and the program has freed up parking spaces at the facility eliminating congestion in parking areas. ATK is pleased with employee response and the effectiveness of the ECO passes.
Source: Human Resource Department, ATK Aerospace Structures
Case Study: Georgia Power, Atlanta, Georgia
One in a series of commuter benefits the company offers, employees are given monthly subsidies for transit (as well as shuttles and vanpools). They also increased shuttles to and from the MARTA rail system to 10 minute (or less) headways throughout the day to encourage ridership. The company increased the use of alternative modes three-fold between 1997 and 2000, from 300 employees to 1500, from 10 to 50 percent of all employees.
Source: Best Workplaces for Commuters, Transit and Vanpool Benefits: Implementing Commuter Benefits as One of the Nation's Best Workplaces for Commuters, USEPA, Office of Air and Radiation, November 2005
Case Study: Calvert Group, Bethesda, Maryland
This socially responsible investment fund located in suburban Washington, D.C., offers its employees full reimbursement for using public transportation in their commute to and from work, regardless of the provider.
- Employee turnover dropped from 25% to 12% after implementation of the program.
- The company gained national attention for the quality of its employee programs in national publications such as Business Week and Working Mothers Magazine.
Source: Best Workplaces for Commuters (www.bestworkplaces.org)
Weblinks
www.nctr.usf.edu - National Center for Transit Research
www.rideuta.com - Utah Transit Authority
www.bestworkplaces.org/pdf/transitvan_07.pdf - Transit and Vanpool Benefits