BOSTON - (BUSINESS WIRE) - Edenred, the premier provider of national commuter benefit programs, Commuter Check and WiredCommute, would like to thank Congressman Blumenauer for introducing the Commuter Relief Act. This important piece of legislation will provide real options to commuters who need them the most. With rising gas prices, increasing congestion, and a heightened awareness of environmental and personal health, Americans are looking for new ways of getting to and from work. The Center for Neighborhood Technology estimates that, on average, 27% of a family's income goes towards transportation cost. With gas prices again soaring above $4.00/gallon in much of the country, the need to incentivize alternative commuting options has never been greater.
Commuter benefits allow pre-tax deduction amounts of $230 per month for transit, vanpool, and parking expenses. In addition, it allows employers to subsidize up to $20 per month for commute-related bicycle expenses. The net result of this benefit is a reduction in commuting costs for employees and payroll taxes for employers, a less-stressed more productive workforce, less congested highways, cleaner air and a demonstrated commitment to the triple bottom line (people, planet and profit). Over the past four years, employers participating in commuter benefits with Edenred saved over $75 million in payroll taxes. Commuter benefits industry wide the estimated payroll tax savings to employers over the same time period is just shy of $275 million. What would you, as business professional, do with the savings...hire new employees, invest in research and development, or increase your marketing budget? These are just a few of the ways employers using their savings.
Unless action is taken, the cap on transit and vanpool will reduce from $230/month to $120/month at the end of this year while parking will remain the same; thereby giving a financial incentive to drive alone to work. The Commuter Relief Act introduced today takes that action. By establishing parity between transit and parking benefits at $200/month, this legislation will eliminate the financial incentive to driving alone while also making the transit portion of the benefit more flexible by encouraging companies to create and expand vanpool programs. This is all done without increasing the federal debt one dollar.
About Edenred USA
Edenred USA is a leader in innovative employee benefits solutions and premier provider of national commuter benefit programs: Commuter Check, a nationwide commuter benefits program provider; and WiredCommute, a private label program for third party administrators. Its mission is to make tax-free commuter benefits a staple in employee benefits packages throughout the American workplace - while helping protect the environment.
About Edenred Group
Edenred, which invented the Ticket Restaurant meal voucher and is the world leader in prepaid corporate services, designs and delivers solutions that make employees' lives easier and improve the efficiency of organizations.
By ensuring that allocated funds are used specifically as intended, these solutions enable companies to more effectively manage their:
Employee benefits (Ticket Restaurant, Ticket AlimentaciÃ³n, Ticket CESU, Childcare Vouchers, Commuter Check, WiredCommute etc.)
Expense management process (Ticket Car, Ticket Cleanway, etc.)
Incentive and rewards programs (Ticket Compliments, Ticket Kadeos, etc.)
The Group also supports public institutions in managing their social programs.
Listed on the NYSE Euronext Paris stock exchange, Edenred operates in 40 countries, with 6,000 employees, nearly 530,000 companies and public sector customers, 1.2 million affiliated merchants and 34.5 million beneficiaries. In 2010, total issue volume amounted to €13.9 billion, of which 55% was generated in emerging markets.
Ticket Restaurant and all other tradenames of Edenred products and services are registered trademarks of Edenred SA.
Jeremy Doak, +1 857-228-1449
Director of Marketing