Getting Started: Clarity Benefit Solutions Offers Tips for Designing a Commuter Benefits Plan for 2019
NEW YORK, Oct. 2, 2018 /PRNewswire/ -- Clarity Benefit Solutions offers tips for designing a commuter benefits plan for 2019.
Employers should offer their employees a commuter benefits plan because it will provide both employers and employees with a multitude of advantages. It is an effective method to encourage employees to use public transportation by allowing them to use pre-tax dollars to pay for various commuting expenses via the following methods: a pre-tax, employee-paid payroll deduction, a tax-free, employer-paid subsidy, or by combining both methods. Here are some tips for designing a commuter benefits plan for the upcoming year.
First, employers should determine what transportation benefits are qualified for their company. Federal laws mandate that qualified transportation benefits meet specific criteria. Examples include a transit pass being subject to specific conditions; transportation in a commuter highway vehicle is required to pertain to travel between the employee's residence and workplace; qualified parking; and any qualified bicycle commuting reimbursement of up to $20 per month. The bicycle benefit is not available with any other qualified transportation benefit.
Next, employers should make sure the plan they choose is the best fit for their company. Determine how much a plan will cost as well as the savings that will be realized by offering a commuter benefits plan. The next step is to scrutinize the company's savings from an annualized perspective. To accomplish this, take the average election for each employee, less any administration fees. Consult with a benefits administrator to establish available transportation options accessible at all company locations, and which options are best to offer employees.
Once the plan is in place, hold a meeting to explain how it works as well as what its advantages are, emphasizing the tax savings and monetary advantages. Employees can realize significant savings on these expenses—up to 40 percent in some cases. Share commuter benefits information in many formats so employees of all generations can absorb this information. Provide employees with a user-friendly web portal so it is easy for them to register.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
SOURCE Clarity Benefit Solutions
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