How Commuter Benefits Can Save Your Employees Money


Commuting to work can be expensive. Between gas, maintenance, and tolls, the costs can add up quickly. It's not just a financial burden for individuals, but it can also negatively impact the environment. Employers can assist their employees with this struggle by offering commuter benefits. Commuter benefits are a way for employees to save money and reduce their carbon footprint. Let's delve deeper into how commuter benefits can save your employees money.

What Are Commuter Benefits?

Commuter benefits are a program that allows employers to offer their employees benefits that support the cost of commuting. The most common type of benefit is a pre-tax payroll deduction. This deduction is used to pay for an employee's commute to work. Some employers even offer direct payment for transportation services that accept credit cards or a transit pass. Commuter benefits programs are usually offered through a third-party vendor.

How Do Commuter Benefits Work?

Commuter benefits work by allowing employees to pay for their commuting expenses using pre-tax dollars. This means that the money is taken out of their paycheck before taxes are applied. By doing this, their taxable income is lowered, which reduces the amount of income tax they have to pay. The money can be used to pay for things like public transportation, parking, rideshare services like Uber or Lyft, and bike sharing programs.

Types of Commuter Benefits

Pre-Tax Payroll Deduction

As mentioned, pre-tax payroll deduction is the most common type of commuter benefit. The employee designates a certain amount of their pre-tax earnings to be used for commuting expenses. The money is then taken out of their paycheck automatically, and the employee can then use it to pay for their commute expenses.

Employer-Provided Transportation

Some employers provide direct payment for transportation services that accept credit cards or a transit pass. This means that employees don't have to worry about paying out of pocket or getting reimbursed. The employer covers the cost and the employee simply uses the service as they need.

Parking Benefits

Parking can be a significant expense for employees who drive to work. Commuter benefits can help cover those costs. Employers can offer parking benefits by covering the cost of parking fees or designating pre-tax dollars to pay for parking.

Bicycle Commuting Benefits

Bicycle commuting benefits are a great way to promote employee health and wellness while reducing carbon emissions. Employers can offer incentives for employees who bike to work, such as direct payment for bike-sharing programs or reimbursement for personal bike maintenance expenses.

The Benefits of Commuter Benefits

The benefits of commuter benefits are numerous for both employers and employees. For employers, commuter benefits can help attract and retain employees. They can also help reduce the carbon footprint of the company and promote a culture of environmental responsibility. For employees, the benefits are even more significant. They can save money on their commuting expenses and reduce their taxable income. Commuter benefits can also reduce stress associated with the high cost of transportation, which can improve overall employee well-being.


Commuter benefits are a win-win for employers and employees. Offering commuter benefits can help employers attract and retain employees, reduce their environmental impact, and promote overall employee wellness. For employees, commuter benefits reduce the financial burden of commuting expenses and promote stress-free transportation. If you're an employer, consider implementing a commuter benefits program for your employees. It's a smart financial decision that can have significant impacts on your company's bottom line.