The DC Commuter Benefits Law requires organizations with 20 or more employees in the District of Columbia to offer commuter benefits in at least one of three ways:
- Employee-Paid, Pre-Tax Benefits: employees have the options to set aside up to $260 per month in pre-tax funds from their paycheck for their transit and vanpool expenses
- Employer-Paid, Tax-free Benefits: the employer supplies a transit pass or covered reimbursement of vanpool or bicycling costs.
- Employer-Provided Transportation Service: provided at no cost to the covered employee in a vanpool or bus operated by or for the employer.
DC employers! This year, make it a priority to put a focus on commuter benefits in addition to your company’s traditional benefits. Employer-sponsored transportation benefits are not only important, but they’re also required by law for companies with over 20 employees. goDCgo wants to make it as easy as possible for you to help your employees opt into pre-tax commuter benefits. Here are a few ways to do so:
1) Consider setting a goal and work towards signing up a specific number of new people for commuter benefits this year.
2) Hold a ‘benefits fair’ or open office hours for your employees. You can set up booths or tables to showcase each benefit your organization offers.
3) Invite goDCgo to talk one-on-one with employees about how they can take advantage of these benefits to save time, money, and live healthier lifestyles.
If your organization does not currently have any commuter benefits (and you have more than 20 employees), it is imperative you consider adding them before open enrollment period. There are many reasons to offer commuter benefits to your employees:
Reduced Cost and Tax Savings
- Save up to 9% on FICA payroll taxes
- Reduce employee commute costs by up to $1,000 in taxable income and out-of-pocket commute expenses
Recruitment and Retention
- Increase job satisfaction and improve employee retention
- Promote healthy, active transportation, and lower healthcare costs
- Help reduce employee stress from commuting and related expenses
Sustainability and Recognition
- Stand out as forward-thinking and committed to being a green workplace
- Compete for elite designations like Best Workplaces for Commuters and Bicycle Friendly Business
- Earn Leadership in Energy and Environmental Design (LEED) credits
If you need assistance working through your commuter benefits program, contact goDCgo's Employer Services team at email@example.com or 202.299.2186.