There is a continuing quest by large and small companies for programs to enhance employee benefits and morale while reducing overall costs to the company.

As healthcare reform reduces trade-off options for a key element of employer benefits, smart executives/owners are turning to other more affordable programs to maintain and enhance the corporate experience for employees.

In this process, an emerging and uniquely urban-centered benefits approach is gaining corporate champions ---- commuter benefits programs.

Commuter Benefits programs have several unique advantages for both large and small employers.

They enable both the company and the employee to save on federal employment taxes, a significant benefit to both parties.

An added plus, the programs can also be used for not only getting to and from work by transit, but also qualified vanpools, parking, ferries, etc..

In fact, in 2010, employees can save up to 40% of their commuting costs while employers are not liable for FICA payroll taxes on the monies set aside for these programs.

Secondly, these programs are relatively easy to implement and administer.

For small employers, companies such as TransitCenter, provider of the TransitChek Commuter Benefits Program, offer easy-to-use and administer program that allows employees to save up to $1,000 or more a year on their commuting costs. 

For medium to large corporations companies across the country, TransitCenter offers a wide-range of services and technology to ease administration costs and efforts. To learn more click here

According to Dan Neuburger, President & CEO of TransitCenter, “As commuting costs are rising across the country, interest in these programs has skyrocketed, with large numbers of companies investigating and implementing these programs. More than 35% of companies are currently offering a commuter benefits program and that number increase to 46% in the Central Business District according the results from TransitCenter’s 2009 Commuter Impact Survey.

A survey by this newsletter’s parent Information Strategies, Inc., earlier in 2010 found that one in four urban-centered respondents said they had installed or are examining such programs.

Another study, by a leading transportation analyst indicated that debit/credit card fare paying systems are expected to double in the next five years as more and more urban transportation systems move toward cashless payment schemes.

Even for commuters who are not utilizing transportation units with electronic paying systems, vouchers are available.

This trend will accelerate the use of corporate-issued debit cards as a means of benefiting employees while reducing FICA contributions for employers.

Experts warn however that companies seeking to institute such programs need to utilize experienced companies to insure proper implementation in accordance with IRS rules.

According to Neuburger, “we are seeing a lot more interest in companies offering commuter benefit programs for their employees. This is the one benefit that is a win-win for everyone – companies save money on FICA, employees save money on their commute and when people switch from driving to transit, we are reducing traffic congestion and helping the environment.  It is also  a means of building employee morale and reducing FICA costs. 

Neuburger adds, “However, implementation needs to be guided by experienced and proven providers who can make the process easier and more rewarding.”

His company can be reached through www.transitcenter.com/taxtime.