High Gas Prices Make Employers Consider Transport Benefits
Expensive gasoline, in part due the economic fallout from Hurricane Katrina, is fueling new interest in transportation benefits, such as qualified transportation expense plans and carpooling arrangements.
Qualified transportation expense plans allow employees to save 30% to 40% on out-of-pocket expenses on certain transit and parking costs associated with their commute to work by paying for those expenses with pre-tax dollars. Commonly used in major cities by commuters who take mass transit, the benefit also is available to workers who use carpools.
Despite rising gas prices over several years, the number of employers with transportation benefits has remained flat. This year, 14% of companies offered a qualified transportation expense plan or transit subsidy, compared to 13% in 2001, according to the Society for Human Resource Management's 2005 benefits survey. The Census Bureau reports that 12% of workers take public transportation and 5% carpool.