Is anyone using the Bike Commuter Tax Benefit?

I am starting to look into the Commuter Tax Benefit that was made into law a few years ago. I'd like to use it at my new job. Has anyone setup something like this with your employer? How did it go? 

I'm having trouble finding out the specific details of the benefit - Is it a pre-tax deduction, a reimbursement, or a credit? I would love to hear how local Chicago businesses and employees are using this benefit. 

Thanks!

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Permalink Reply by Michelle on October 29, 2013 at 5:38am

No, because I use a transit benefit and as I understand it, you can only use one. That one's worth more, so... 

Permalink Reply by Skip Montanaro 0mi on October 29, 2013 at 6:14am

I use it. I don't know how it's setup. They offer it here at work. I get three $20 commuter vouchers (checks to spend at participating bike shops) every quarter.

I agree with Michelle. You can only use one benefit. I have done the Metra subsidy in the past as well.

Permalink Reply by Davo on October 29, 2013 at 6:18am

its something that is set up with your place of employment (i believe). You have to get them to adopt this policy. I bring this up once a year but never get any response where I work.

Permalink Reply by Jeremy on October 29, 2013 at 6:37am

Skip, do you know if your office participated immediately or did it take some convincing on the part of employees?  I'm in the same boat as Davo, I've repeatedly asked our HR office to get onboard with this benefit and there's no response. 

Permalink Reply by PJ Kolnik on October 29, 2013 at 6:45am

http://www.lesstaxingcommute.com/index.php/employers/benefits.html

Check out this link for most of the information you need to know as an employee and employer.

Permalink Reply by Kevin Mulcky on October 29, 2013 at 6:46am
My office has showers, lockers, and secure bike parking but evidently they never heard of the benefit. It seems like it'd be a good compliment to the on site facilities.

Word from HR is that they're going to look into it. *fingers crossed*
Permalink Reply by Reboot Oxnard on October 29, 2013 at 6:46am

You can receive, from your employer, a check each month in tax-free dollars to spend on a qualified transit option: no Federal income or FICA taxes are withheld. The employer also benefits, since they don't have to pay the matching FICA amount they normally would.

The annual limit currently is $2940, above that you and your employer have to pay taxes on the money.

The RTA and the CTA have set up programs to simplify the process a little bit so that employees receive a voucher from the employer that can be redeemed for passes good for their systems. Beyond that, there are a number of options available: van pooling can be paid for (especially if the employer owns the van) and parking can be paid for.

There is a commuter bicycle reimbursement program but it's kludgy and if your employer offers it (and you choose to take advantage of it) you can't participate in the regular transit benefit program. The maximum reimbursement for the bike program is $20 per month and you have to be able to show your expenses. I don't have any experience with the bike benefit program, it seem mostly like a joke.

Bottom line: if you ride the CTA or the RTA regularly you should be pounding on your employers door and asking for this - it saves him money and it saves you money. As a former employer, I liked the payroll tax savings I realized but there was also a noticeable increase in attendance - no more 'it's the end of the month and I don't have cash for the train' problems - an people really liked that voucher each month.

The CTA program

The RTA program

Wikipedia article about transportation benefits

Permalink Reply by Skip Montanaro 0mi on October 29, 2013 at 7:16am

I spoke with my friend who originally raised the topic here. He said our former CEO is a bikie. He didn't even get the chance to complete his explanation when Matt said, "Sounds good. Let's do it." Based on that, my suggestion would be to find the bikie in your company with the most clout, and ask him or her to pitch the idea.

Jeremy said:

Skip, do you know if your office participated immediately or did it take some convincing on the part of employees?  I'm in the same boat as Davo, I've repeatedly asked our HR office to get onboard with this benefit and there's no response. 

Permalink Reply by Martin Hazard on October 29, 2013 at 6:20pm

If your employer is a large corporation, does the $2940 limit still apply, or would that be by district or store? 

Permalink Reply by Skip Montanaro 0mi on October 30, 2013 at 2:54am

Or anyone crazy enough to drive to the Loop and park near/at their office. I think my building's monthly parking fee is $475 ($5700/year), and that might have been a "special offer" they were running when I saw it in the elevator TV. It was also for the "peon" parking on the lower level, not the VIP parking where us bikies get to park. :-)

Cameron 7.5 mi said:

However people with really expensive commutes, like Metra M-zone riders, will hit the limit.

Permalink Reply by M G on November 1, 2013 at 2:27am

I set this up for the small company I work for (3 employees) and it is a breeze. I use the Metra/RTA benefit, but the system is very straightforward. www.mytransitbenefit.com is the new RTA site, your employer just needs some basic info (I think their EIN, if they want to pay by ACH their bank info) and then you can set yourself up as an employee and place orders!

When I set this up my company offered to chip in for my Metra so I only pay 60% of the pre-tax cost. 

Permalink Reply by Davo on November 1, 2013 at 3:51am

So does that work with any of your bike costs?

M G said:

I set this up for the small company I work for (3 employees) and it is a breeze. I use the Metra/RTA benefit, but the system is very straightforward. www.mytransitbenefit.com is the new RTA site, your employer just needs some basic info (I think their EIN, if they want to pay by ACH their bank info) and then you can set yourself up as an employee and place orders!

When I set this up my company offered to chip in for my Metra so I only pay 60% of the pre-tax cost. 

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