News Release

Pre-Tax Commuter Benefit Allowances on the rise in 2007

Individuals offered pre-tax commuter benefits are more likely to use alternate commute modes such as public transit or vanpooling, and offering this type of benefit at your worksite can be very easy with the assistance of TMA Delaware. In addition, the federal government has made participation in pre-tax commuter benefits programs even more enticing, by raising monthly allowances to $110 for vanpooling and transit, and $215 for parking.

Pre-tax benefits help employees save money on their commute by allowing them to pay for their commute with pre-tax dollars, but the savings don't end there. Employers also reduce the amount of FICA taxes paid on behalf of their participating employees.

There are several providers able to assist you with the implementation of a commuter pre-tax benefit at your worksite. WageWorks a national benefits provider can work with you to set up a program at your worksite, for more information contact their sales department at 1-866-602-3877 for fees and details or by visiting www.wagesworks.com

TransitChek is provided locally by the Delaware Valley Regional Planning Commission (DVRPC) and can help you set up a pre-tax commuter benefit program. In the traditional TransitChek system an employee uses pre-tax dollars to purchase TransitChek vouchers which can then be used to purchase transit passes from a variety of regional transportation providers, and can be used to pay for vanpool commutes on vehicles provided by VPSI. Minimal fees apply to participate, 2% of the cash value of TransitChek order and $12 for shipping and handling. Program administration takes place at the employer worksite. For further details contact TransitChek directly by calling 215-592-1800 or by visiting www.gettransitchek.org. Newly developed by DVRPC is, TransitChek Select in which TransitChek vouchers are delivered directly to employee home or office addresses, and there are options for quick online enrollment, ordering, and reporting. Offering a transit benefit has never been easier! Visit www.transitchekselect.com for more information.

TMA Delaware also offers assistance to member employers looking to implement a pre-tax commuter benefits program at their worksite. TMA Delaware is a registered DART First State ticket sales outlet, and can also access TransitCheks for participating employers. On a monthly basis member employers enrolled in this program send the TMA a list of participating employees, who will then be mailed transit passes in the specified amount. The employer handles paying for these passes with employee pre-tax dollars in house. The employer has two payment options for the transit passes or TransitCheks:

• Option 1: Employer can provide a cash lump sum to the TMA for drawing against each month. This will include purchase of DARTCards and TransitChecks. TMA will notify employer when funds need to be replenished.
• Option 2: Employer can submit payment to TMA when the monthly employee report is sent which will include the dollar value of all tickets issued that month.

Establishing a pre-tax commuter benefits program at your site is one of the most effective ways to encourage employee use of alternative commute modes and doing so is easier than you think. Contact Suzanne Reph at the TMA office (302-658-9001) to discuss setting up a program for your employees.