A recent survey by transit benefit vendor Jawnt revealed that most of the more than 400 HR professionals surveyed said their companies offered some form of commuter benefit. Over one-third of respondents indicated that these benefits played a key role in encouraging employees to return to the office (RTO). Employers also noted additional advantages of offering commuter benefits, such as helping employees save money, meeting environmental goals, and enhancing talent acquisition and retention efforts.
However, implementing these benefits isn’t without challenges. HR professionals cited time-consuming tasks like addressing employee questions and managing HR systems and IT-related issues as obstacles. Since many employees use commuter benefits daily, the need for technical support can be higher compared to other benefits.
Commuting has become a focal point in 2024, especially with the push for RTO policies. Despite resistance from employees who prefer remote or hybrid work arrangements, nearly 90% of employers plan to enforce RTO by the end of the year, according to Resume Builder. This trend has given employers a reason to reassess their commuting policies, moving beyond the default option of private car commuting.
Organizations like Seattle Children’s Hospital have created commute programs that emphasize choice, recognizing the drawbacks of car congestion and the costs associated with maintaining on-site parking. Understanding the diverse needs of commuters is crucial, as Jeff Stade, CEO and co-founder of Jawnt, highlighted in the report.
Commuter benefits also offer tax advantages under IRS regulations, allowing employers to deduct up to $315 per month in qualified transportation benefits from employees’ taxable wages in 2024. However, Jawnt’s report suggests that the potential for payroll tax savings isn’t the most compelling reason to promote these benefits. Instead, saving employees money was the top value proposition, cited by 65% of respondents, followed by encouraging RTO and reducing commute times, both at 32%.
