Many Silicon Valley employers already offer a monthly SmartPass for VTA transit service, but what about employees who want to ride Caltrain, BART, ACE, SamTrans, AC Transit, Santa Cruz Metro, or another transit provider in lieu of or in addition to VTA? The answer is “Commuter Check”. 

The Commuter Check program provides employees with a pre-paid debit card or voucher, either from pre-tax wages or an employer-provided benefit that can be used to purchase transit fares, load funds onto a Clipper Card, or for bicycle expenses. Employers can offer SmartPass together with Commuter Check to cover travel on other transit agencies such as BART, Caltrain, and so on. The employer will need a third-party provider to implement the commuter check program, such as WageWorks, Edenred or others.

When workers participate in a commuter benefits program, the cost savings comes from not having to pay income taxes on the money they set aside for commuting costs, saving up to 40% on commuting expenses. Commuter benefits can save both a company and employee money. Based on current legislation, a company can offer commuter benefits in the form of tax-free employer-paid subsidies, pre-tax employee-paid payroll deductions, or a combination of both. For employers, commuter benefits are considered tax-free benefits, not employee wages, so the company can save on average 7.5% on payroll taxes.

Although there is no minimum number of employees needed to begin offering commuter checks, the Bay Area Air Quality Management District (BAAQMD) regulation 14 requires that companies with 50 or more full-time employees offer commuter benefits in order to encourage employees to commute to work by public transit and other alternative commute modes, to improve air quality, reduce emissions of greenhouse gases and other air pollutants, and decrease traffic congestion in the San Francisco Bay Area.

Become a transit savvy employer, or ask your HR department if you and fellow employees can take advantage of the commuter checks benefit.

Option 1: Pre-tax option: Eligible employees can elect to exclude from taxable wages costs incurred for transit passes or vanpool charges, up to $260/month. 
Option 2: Employer-paid benefit: A program whereby the employer offers employees a subsidy (also up to $260/month) to offset the monthly cost of commuting via transit or by vanpool.
Option 3: Employer-provided transit: Transportation furnished by the employer at no cost, or low cost, to employees in a vanpool or bus, or similar multi-passenger vehicle operated by or for the employer.