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TRANSACTIONS NEWSLETTER ONLINE

March/April 2002

Tax Change Sparks Surge In Workplace Transit Sales

Bus art by Paul J. Fisch Workplace transit benefit programs are enjoying a surge in popularity thanks to recent changes in tax laws.

One longtime player in the tran-sit benefit field seeing an upswing in local sales is Commuter Check®, which supplies employers with vouchers that workers can exchange for transit tickets at supermarkets and other retail outlets. "A lot of companies have increased their order size, and new companies are signing up," said Stuart Baker, the local representative for the nationwide Commuter Check® program.

As of January 1, workers can set aside as much as $100 a month in pretax earnings for transit tickets and passes — up from a $65 ceiling. "For every $100 you spend on transit, it's really only costing you $60, because you're saving $40 in taxes," Baker said (referring to commuters in the top tax brackets).

To date, over 80,000 commuters working at 3,400 Bay Area companies have signed up for Commuter Check®. Bay Area voucher sales in March totaled $4.8 million, up from a monthly average of $2.3 million in 2001, Baker said.

WageWorks, a national commuter benefits provider that entered the Bay Area market two years ago, also is reporting an increase in transit benefit activity. Instead of issuing vouchers, the company sends transit tickets and park-and-ride lot passes directly to workers' homes. The company's local marketing manager, Jim Reed, said that 100 or so employers in the region currently participate in the transit benefit program, which is on track for a 500 percent increase in Bay Area sales this year compared to 2001.
— Brenda Kahn

For more information:
Commuter Check® - call 510.601.0490 or 800.559.7909, or visit www.commutercheck.com

WageWorks - call 877.924.3967 or visit www.wageworks.com

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