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How TransitChek Helps Businesses Save Money
November 22, 2016
Companies who offer benefits to their employees tend to have a more motivated and engaged workforce, and are better able to attract fresh talent to their ranks. When employers discover a benefit that will entice their employees and save them money in the long run, the choice is clear. TransitChek was the first provider of tax-free commuter programs, and still leads the competition in providing transit and parking benefits that help both employees and their employers save money in taxes. Here’s how it works: commuters are offered the opportunity to use pre-tax dollars to pay for their commute, saving them in taxes down the line. TransitChek allows commuters up to $255/month for transit and $255/month for parking, which, as we all know, is a blessing in a car-centric city's. Through TransitChek, employees have reported an average savings of $2,450 each year. For entertainment professionals who often need to drive around the city for meetings and appointments, the savings on transit and parking make a big difference.
With every deduction made by an employee, the employer also saves by reducing their payroll taxes, saving around $470 per employee annually. Job seekers have increasingly high standards for their benefits, and have begun limiting their search to companies who can offer benefits like TransitChek. Some states have actually begun requiring some employers to offer pre-tax benefits to their employees, so offering TransitChek allows them to remain in compliance with the law while still saving money.
As federal and state governments develop incentives to help make the business world slightly more environmentally conscious, employers who are quick to take advantage of the opportunities stand to benefit the most. As with tax credits for hybrid cars, post- and pre-tax deductions related to commuting encourage companies to think more about their transit choices and place reduced-impact transit methods like mass transit at an advantage.
TransitChek makes it easy to enroll and start saving, but some business owners simply aren’t aware of this program. To keep abreast of pre-tax benefit programs and other incentives that are available and waiting in your state, consult with a third-party financial advisor regularly and take the initiative to engage early to gain the biggest long-term advantages to your business and employees.