Randa Gahin: Your Ticket to Saving $100s a Year

Do you take the bus, train, ferry or vanpool to work? Would you like to save money on your commuting costs? Then commuter benefits are your ticket. Through commuter benefits, you pay for transit tickets or vanpool fare with pre-tax dollars, saving about 40 percent on your commuting expenses.

How Does It Work? Commuter benefits are made possible by tax code rules of the federal government. The benefit must be obtained through your employer. When your employer offers the benefit, you can deduct up to $100 per month from your paycheck, pre-tax, to pay for transit and vanpool expenses. Because you don't pay taxes on the money you deduct, you save about 40 percent on the cost of your transit tickets or vanpool fare.

The benefit is easy for an employer to set up and administer. An employer can even save money because payroll taxes are reduced! Benefits are delivered either in the form of transit tickets or vouchers that can be redeemed for passes, tickets and vanpool expenses.

Thousands of employers in San Francisco and across the country are offering commuter benefits to their employees. You could be taking advantage of this savings, too.

Commuter benefits are easy to set up. The benefit works like other pre-tax plans, such as dependent care and medical reimbursement, except that it's much simpler. There are no tax forms to fill out or plan documents to submit. Commuter benefits are exempt from the usual restrictions and reporting requirements that accompany other pre-tax programs allowed by the IRS.

Employers can offer commuter tax benefits as a payroll deduction or a subsidized benefit (paying part or all of the employee's monthly transit expenses). Most employers administer the benefit themselves, purchasing the transit tickets or vouchers each month and distributing them to employees.

To get started, urge your employer to call (415) 355-3727 for assistance. Several companies are available that provide commuter benefit services, ranging from bulk purchase and delivery of transit passes or vouchers to full program administration. Visit www.commuterbenefits.org for more information and a list of commuter benefit service providers.

Everyone Benefits

Commuter benefits aren't just good for your pocketbook. We all benefit. By providing significant cost savings, commuter benefits encourage people to use transit and vanpools to get to work. This helps relieve traffic congestion and reduce air pollution, making our city and region a better place to live.

Frequently Asked Questions:

Q: Who is eligible? A: All types of employers in the private, public, and non-profit sector are eligible for the benefit, and it works for any size employer from the largest to the smallest.

Q: How do I get the savings? Does it change the way I fill out my tax forms? A: You get the savings by using pre-tax dollars deducted from your paycheck to buy transit tickets/passes or vanpool fare. Nothing changes in the way you prepare your annual tax forms. The savings are immediate and you see them on every paycheck.

Q: How do I get my employer to offer commuter benefits? A: Try one or more of the following:

· Tell your boss or HR manager about commuter benefits and give them a copy of this article;

· Get your employer to visit our website (www.commuterbenefits.org);

· Call (415) 355-3727 for assistance in talking to your employer;

· Speak with other employees at your work place and have them request commuter benefits, too;

· Put a note in the suggestion box at your workplace;

· Speak to your union about including it as an employee benefit.

For more information about commuter benefits, call (415) 355-3727 or go to www.commuterbenefits.org.

Randa Gahin coordinates commuter benefit programs for SF Environment. Learn more about how the City is working to make a safer, healthier environment at www.sfenvironment.com, visit the EcoCenter at 11 Grove St., or call (415) 355-3700.