As part of the "fiscal cliff" legislation Congress recently passed, the Commuter Tax Benefits (Centro's Fare Deal Program) pre-tax dollar limit that employees can use towards public transit and vanpools was raised from $125 to $240 through December 31, 2013. The employer-provided benefit is also retro active from January 1, 2012 and is now equal to the parking tax benefit.
Now, your non-driving commuters can get a break on a bus fare. Today, many companies reimburse employees for their parking costs.
Now, businesses have an opportunity to help their bus-riding employees as well.
The Employer Fare Deal Program from Centro allows you to offer your employees convenient, cost-efficient transportation to and from work. As a fair gesture, you simply make bus fare available to your employees right at work. This includes our monthly Centro Passports, Debit cards and tokens.
The Transit Benefit Law provides employers with a monthly tax-free transit allowance of $240 per employee to support the use of public transit. So with this tax advantage you can choose to subsidize part or all of your employees' bus fare. And in doing so, you can enjoy a nice tax savings, in addition to defraying your employees' commuting costs - A Fare Deal. Or, if you’d prefer, you can allow you employee to pay for their transit costs with pre-tax dollars, up to $240 per month. There is no cost to the employer.
Guaranteed Ride Home
The Employer Fare Deal Program includes a special feature for monthly Centro Pass holders - The Guaranteed Ride Home. If an emergency causes an employee work late and miss the last scheduled bus or need to return home during work hours, Centro will guarantee that person a safe ride home. Under these circumstances, Centro may provide a taxi or similar arrangement to assure your employees receive transportation.
How do you benefit as the employer?
- You have the opportunity to provide equal support to employees who drive to work, as well as those who do not.
- It's a program that can be used as an aid to recruitment and morale.
- You get savings on parking costs and parking subsidies when employees switch to lower-cost transit.
- It encourages more employees to take the bus to work, thus enabling more parking for customers and clients.
How will your employees benefit?
- They receive reduced transit costs for Centro Transportation.
- Better morale, knowing that they are getting a break along with driving employees.
- Savings on gas, parking, maintenance and other costs associated with driving.
- With a subsidy, driving employees may now decide to become Centro riders, which is a more convenient and less stressful commuting method.
- With the Guaranteed Ride Home, employees have the security of knowing that they won't be stranded.
Getting started is easy. Call Centro at (315)442-3374 to meet with a representative and learn more about benefiting from the Employer Fare Deal Program.
See our Fare Deal Ad here.