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 Chitown_Mike on November 1, 2013 at 3:53am

So if I am following everything, if you ride a dino burning train or drive you get more money than if you rode a bike?

A $20 credit to ride a bike doesn't help anyone out, IMHO.  That would barely pay for a complete tear down once a year, and if people are riding everyday that would probably mean in excess of 3-4k miles per month.  If I did nothing other than ride to work, and I luckily live 4.3 miles one way away, I'd still put over 2000 miles on my bike in a year.  I have done that already and I need to tear it down before winter and I just tore it down at the beginning of spring.  Heck, that's only 2 tubes a month for me if I had bad enough blow-outs or something.  Doesn't sound like much of an incentive, maybe $50 would, but $20 seems like nothing.

Am I the only one that it doesn't make sense to me as to why riding a bike gets you diddly other than a body like a Greek god/goddess, no traffic, feeling of euphoria each day, relieves stress.....oh, maybe that's why it is only $20.  But still, that should change!

Permalink Reply by M G on November 1, 2013 at 3:59am

You are limited to choosing either the RTA OR bike benefits (for each month). You could get RTA benefits for December and January and decide that February you'll dust off you bike and get that instead. You cannot receive the bike check with any other commuter check within the same benefit month.

I ride my bike before and after taking the Metra. For me, the monthly cost for a Metra pass is $135.25. You can only get $20 for the bike check, so the savings are much greater for me to reap the pre-tax savings by foregoing the bike check and getting $135.25 in RTA transit check money each month (I think I pay roughly $70 in the end?). 

You could probably work it out so that you loaded the maximum one month, bought two months of Metra passes, and got the bike check every other month. It hasn't worked out for me that the tax savings on $20 is worth it to figure out that, but it might be for you.

Also, I listened to a webinar when RTA released its new MasterCard option (which worked great for me this month!) and you can only use the bike commuter check at certain bike shops (although it seemed like you could get more approved, if you wanted/needed to). I think those were bike shops near your home or work.



Davo said:

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. 

Permalink Reply by Skip Montanaro 0mi on November 1, 2013 at 4:05am

I'm happy with the $20/month voucher. That nearly covers my $25/month shower only membership at the health club in the building (which I keep year-round, even if I'm mostly riding the train in the cold winter months). The voucher can only be spent at your bike shop (they have to sign up as well - it's easy). I buy the occasional chain, brake pads, etc.

At any rate, it sure beats the $125-ish hit my wallet takes for the the Metra monthly. I buy 10-ride passes instead, and see how long I can make one last.

Permalink Reply by Kevin Mulcky on November 1, 2013 at 4:07am

Skip, so you get a voucher for $20/month, or is it a pre-tax payroll deduction like a standard transit benefit?

Permalink Reply by Skip Montanaro 0mi on November 1, 2013 at 4:10am

I get a voucher. Nothing comes out of my paycheck. To save on administrative overhead, I actually get three $20 vouchers every quarter.

Permalink Reply by Kim Bellware on November 1, 2013 at 5:25am

I get it from my work but wasn't totally clear on whether it's free money for me (since it's a "benefit" to my employer that I bike rather than drive/CTA to work) or if it's a pre-tax deduction. 

I stopped getting the vouchers about 2 months ago and need to figure out why that happened. Before, I was getting the ADP Benefits check for $20 every month. I called a few places around town and Comrade Cycles in Ukrainian Village ultimately said they'd accept them. Now, West Town Bikes and several other places accept them too (they work just like an unsigned check). 

At Comrade, they'll cash them and put it on your account as store credit so you can actually sock away a more significant amount for a bigger purchase like lights or a new wheel set since the $20/mo checks have a 90 day expiration date. 

Permalink Reply by Skip Montanaro 0mi on November 1, 2013 at 5:34am

I've used them at Performance Bike and Bucephalus (in Evanston). A friend uses his at Johnny Sprockets.

Permalink Reply by Apie (11) on November 1, 2013 at 7:11am

I know my office does this for the Metra/CTA is there a link or any info where they specifically mention for tax benefits for BIKES?

Permalink Reply by Skip Montanaro 0mi on November 1, 2013 at 7:13am
Permalink Reply by Davo on November 1, 2013 at 7:21am

Just sent it to my HR we will see what happens

Skip Montanaro 12mi said:

Permalink Reply by Andy J on November 2, 2013 at 4:19am

I just checked with our HR department at Northwestern - "not on our radar"...

Permalink Reply by RobertW on November 5, 2013 at 3:34am

@Kevin - Did you have any luck convincing your company to offer the bike commute benefit? I have some materials I could send that might help you argue what your employer could gain by adopting the benefit.   I have summarized some of these on an infographic on a blog I maintain  (http://www.bikeposse.com) .   Feel free to email me at admin@bikeposse.com for more info.  

I am working on my own employer as well.. and would like to compare notes with you.

Anyone else know of places that have already implemented a bike commute benefit program?  Would like to talk to benefits administrators to better understand how they implement it, and what benefits they think they get...

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