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Ceridian Commuter Administration Services: An opportunity for wide-ranging impact. Now.

The news is sobering: the cost of a gallon of gas averages $4.08 nationally, and your employees are feeling the pain. For many people, the financial realities of commuting to and from work have never been more apparent. A May 2008 study by Sperling revealed that the annual cost for a two-worker family that drives daily in Atlanta was $5,700 -- for gasoline alone.

Behaviors change when employees feel a financial pinch. More and more workers are turning to public transportation as an alternative to driving themselves to work each day. Additionally, qualified employees become more difficult to attract and retain as commuting costs figure more prominently in their career decisions. And in the midst of all these challenges, companies continue to seek tangible ways to deliver on environmental stewardship initiatives to which they are committed.

One advocate for the benefits of commuter administration services is Ceridian Product Manager Jon Attwooll. "This is a remarkable time," he says. "Trends in asset retention, energy efficiency and gasoline spending -- each of which is acutely felt -- have combined."

This powerful convergence of trends has sparked new interest in commuter administration services. Employers can deliver real help to the workforce, give their organization a competitive edge in hiring and reduce the company's carbon footprint. All in a solution that pays for itself quickly.

How commuter administration plans work
"The employer institutes a pretax commuter reimbursement plan that complies with IRS regulations," Attwooll explains. "Employees can set aside pretax dollars into a commuter expense reimbursement account on a monthly basis. These funds can be used to pay for work-related transportation expenses such as mass transit fares and parking fees."

The IRS has recently raised the limits on pretax contributions, Attwooll says. "The limit for transit -- public transport such as ferries, trains and buses -- is $115 per month. The contribution limit for parking now stands at $220 per month. That means a 'park and ride' employee who uses the full $335 per month benefit will spend $4,020 per year in pretax dollars."

That would reduce the employee's taxable gross income by $4,020, which could reduce the person's tax burden by more than $1,200.

"That is real money," Attwooll says. "Those are real dollars. When an employer can significantly reduce an employee's commuting costs with cost-effective services, there is a lot to be excited about. Companies are finding real value in commuter administration solutions. They can make wide-ranging, positive impact. And they can do it now."

Solid solutions for companies like yours
Attwooll's enthusiasm comes from seeing firsthand how these programs have made a difference for businesses across the nation.

"Commuter administration services provide up to a 7 percent payroll tax savings for employers and 30 percent income tax savings for employees," he says. "And companies of all sizes see the benefit."

After all, it is not only Los Angeles and New York City that have mass transit. Mid-sized cities like Milwaukee, Denver and Atlanta also have light rail and modernized bus systems. Many cities and towns have bus systems that are looking better and better to the workforce these days. Everyone is interested in a program that can significantly reduce an employee's commuter costs.

With an established commuter reimbursement plan, employees can be reimbursed pretax for transit passes and tokens, vouchers, fare media/cards, qualified parking expenses and transportation in a qualified commuter vehicle, up to the monthly limits mentioned previously.

Ceridian has offered commuter administration services since 2000. With nationwide coverage and a 90 percent customer retention rate, Ceridian manages plans for more than 200 clients with over 35,000 participants. The programs meet all employers' needs, including documentation, employee education, enrollment support, personalized assistance, claims administration and management of fare media.

"One of the most valuable aspects of Ceridian's solution," Attwooll says, "is that it frees company staff from the administrative burdens of managing a qualified transportation program in-house. We are committed to ensuring your employees use this valuable program. Right now, your employees are primed for good news about commuting costs -- and your financial folks want to see accelerated return on investment. Ceridian helps you deliver good news to both."

A convergence of trends
"Employers like these programs because they offer real incentives to employees to remain engaged and motivated," Attwooll says. "A pretax commuter plan helps a company distinguish itself and get ahead in the never-ending search for talent. Be the business in your area that demonstrates its dedication to solving the challenges that employees face."

Attwooll reports that Ceridian customers across the nation have found that the program allows them to deliver on environmental commitments, too. Over half a dozen states have some type of stewardship initiative. Some states provide further tax shelters for employers or recognition for meeting certain goals.

"Many of our customers have mission statements that reflect their dedication to 'green' initiatives," Attwooll says. "Our commuter solutions help them reduce their carbon footprints. Companies realize that encouraging mass transit is a far more effective way to save energy than changing out light bulbs or trying to go paperless. The decision to change behavior -- such as taking mass transit -- delivers environmental results that are personal, substantial and enduring."

Discover a solution that delivers real help to your workforce, sets you apart in the marketplace, reduces your carbon footprint and pays for itself quickly. Learn more about Ceridian's Commuter Expense Reimbursement Services.

Sources:
U.S. Energy Information Administration, June 16, 2008, http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp