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Workshops educate business owners on transit benefit ordinance

16 Jan 2009

by: Jeremy Doak

Attendees at a recent series of workshops in the San Francisco Bay Area say workshop sessions sponsored by Accor Services helped them achieve compliance with the San Francisco Transit Benefit Ordinance and avoid hefty fines.  The ordinance requires employers with 20 or more employees in San Francisco to offer transit benefits to their workers.  It is designed to help reduce San Francisco's 2012 greenhouse gas emissions by 20 percent from 1990 levels.  Effective January 19, 2009, failure to comply will result in fines of up to $500 per violation.


Local SF businesses support green initiative

“We support our City’s efforts to reduce greenhouse gas emissions with this ordinance. The workshop we attended helped us to understand transit benefits and how to choose a program that will work well for us.  We learned that in addition to giving our employees incentive to take public transit, our employees and our company will actually save money on taxes with this kind of benefit.  Had we known, we would have implemented a transit benefit even without the need to comply with the ordinance,” said Theresa Stroud of Ford Graphics.

“We’ve been offering transit benefits to our employees since 2002.  We are excited about the new ordinance and our City’s efforts to reduce greenhouse gas emissions. The workshop we attended helped us to understand more about transit benefits and our different options.  We know that the program benefits both our employees and agency to save money on taxes.  Online ordering makes the whole process fast and easy,” said Candy Lam of Self Help for the Elderly.

Compliance Options
The three ways transit benefits can be offered to employees: 1) as a pre-tax payroll deduction, 2) as a subsidy in addition to payroll or 3) a combination of the two.  Many consider the pre-tax payroll deduction the easiest and most cost effective option for employers and employees to achieve compliance.  Commuter Check  Benefit Solutions, industry-leading transit benefit programs from Accor Services USA, has been used by thousands of employers in the Bay Area and hundreds of thousands across the nation for more than 10 years.  In San Francisco, Commuter Check is the most widely used transit benefit solution employers offer, due in large part to the ease with which the program can be implemented – in as little as just ten days – and on-going administration is non-disruptive.  Under the terms of such programs like Commuter Check, employees can designate up to $120 per month in pre tax transit/vanpool benefits, which generally yields a savings of 40 percent on their commuting expenses while saving the employer 10 percent on payroll taxes.


Commuter Check user explains Renee Banks, human resources manager at Chronicle Books says, "We have participated in Commuter Check since 1993. Our employees love it and it requires little administrative effort.  In fact it is one of our top rated benefits. With the transit benefit ordinance, more people will be able to take advantage of the program. We encourage our fellow businesses to participate."


Commuter benefits save the environment and taxes
The more than 300,000 people participating in Accor Services USA commuter benefit programs save over $340 million in gasoline annually; over 8.7 million pounds of carbon every day; and over $129 million in payroll and commuting costs savings for themselves and their employers.

“It is encouraging to see a forward-thinking community like San Francisco institute a mandate for commuter benefits as it continually proves to be one of the most effective ways to encourage public transit use for commuting to and from work,” said Gerard Bridi, President, Commuter Benefits, Accor Services USA.  “We see many other cities across the nation struggle with traffic congestion and poor air quality issues watching San Francisco and hoping to follow their lead soon.”