Replies to This Discussion

Permalink Reply by Jordan Koss (#440) on October 12, 2011 at 8:01am

I tried, but was unsuccessful.  The issue (if I understand it correctly) is that the current benefit does not allow the employer to reduce the employee's taxable wage.  So the benefit is just an additional payment to the employee with no direct economic gain for the employer.  I believe that there are efforts to "upgrade" the benefit into one that would reduce an employee's taxable wage (just like a public transit benefit or a flexible spending account); that would make it more attractive to employers.

 

(BTW, I learned all of this from Melody at ActiveTrans.  She also had info on third party companies that can administer the program if you actually do get it approved.  She was unaware of any company in Chicago that had agreed to offer these benefits.)

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Permalink Reply by dan brown on October 12, 2011 at 8:06am

IIRC it was a deceptive gimmick. I looked into it and for some reason; either my company's benefit wasn't worth the $$$/effort or was ineligible. hope others got something though...

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Permalink Reply by Melanie K on October 12, 2011 at 8:10am

I inquired about it at my office, but since it isn't like the transit benefit (which takes pre-tax dollars out for transit costs) my office told me that it would be like them paying me an extra $20 tax free to commute to work via bicycle. Therefore, it was a no-go at my workplace.  If Uncle Sam would have allowed it as setting aside pre-tax income, such as the public transit benefit that many of my co-workers utilize, my office would have offered it.  As it stands, it would be like my workplace paying me an extra $20 a month (or $120 a year).

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Permalink Reply by Liz on October 12, 2011 at 8:29am

my company offers it, but its an either/or with pretax CTA benefits, the cyclist benefit is so small I'm better off using pre-tax to load up my chicago card for the days I take transit.

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Permalink Reply by Carter O'Brien on October 12, 2011 at 8:29am

We ran into the same hurdles, with our HR department saying they supported the concept, but that the cost of implementation outweighed the benefit (basically the same response as Melanie received). And since the $20 month couldn't be rolled over, there wasn't a lot of grassroots support from our cyclists to press the issue.

 

Bummer.  Hope someone has a success story.

 

 

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Permalink Reply by Mike Zumwalt on October 12, 2011 at 2:18pm

It took me 2 years and I finally got it, whether they are participating and getting the tax benefit or just paying me to shut me up I don't know but it sure helps.

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Permalink Reply by jennifer james on October 12, 2011 at 2:41pm

We had a little post about this benefit on our blog a while back. It's a bit detailed but might be useful-http://chicargobike.blogspot.com/2011/06/take-transit-and-bike-why-...

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Permalink Reply by Mike Bullis 5.5-6.5 miles on October 13, 2011 at 1:57am

No.

I work in a small place in Elgin and am also the only one who bikes in. My COO and I both looked into it together and decided it wasn't worth the paperwork.

 

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Permalink Reply by Active Transportation Alliance on October 13, 2011 at 4:33am

Great to see this discussion with so much life in it.

As this benefit is voluntary on the part of the employer - just like other commuter benefits (pre-tax transit passes, parking reimubursement, etc.) - you will need to appeal to your HR dept. to implement it.

  

Here's what we understand to be true about the program:

  

• The benefit provides up to $20/month for bike commuting-related expenses, including bike gear, repairs and parking fees
• The benefit is not taxable income for the employee; likewise, the employer doesn't pay payroll taxes on the benefit.
• The employer must fund the benefit. It cannot be taken as a payroll deduction, unlike the transit benefit. This has been a major drawback for most employers, who (understandably in this economy) are unwilling to fund a new fringe benefit, especially if they have a high number of employees. 
• The benefit may be paid out as a flat amount per month (rolled into paychecks, say), on a dollar-for-dollar reimbursement basis, or through a third party provider by way of 'bike checks' - just like commuter vouchers that are currently available. (see Accor Services link below).

 

 

Here are some resources to direct your HR department to:

  

• IRS guidance: http://www.irs.gov/publications/p15b/index.html (section 2, under Transportation Benefits)
• FAQ from the League of American Bicyclists: http://www.bikeleague.org/news/100708faq.php
• Bike Commuter Tax Reimbursement Card template (for employees to sign and turn in to 'prove' they biked that month - also from the League):http://www.bikeleague.org/resources/commuters/reimbursement_cards.php
• Commuter Check for Bicycling info, from Accor Services: http://www.commutercheck.com/employers/Products.aspx#b

  

 

Additionally, Rep. Earl Blumenauer from Oregon has introduced a green commuting bill, that would sweeten this benefit and also allow the payroll deduction option.  There hasn't been much action on this however with all the histrionics over the latest transportation bill - but hopefully Blumenauer's bill will be rolled into it.

As always, feel free to contact us at the office if you have any questions.

Brian Morrissey

Commuter Challenge Coordinator

Active Trans

9 W. Hubbard, Ste 402

Chicago, IL 60654

312-427-3325 

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