Post on 12-Jan-2016
description
Starting your Own Transit Benefit Program
Why All the Excitement?
High profile to employees (unlike dental, eye, etc., that is only visible when they need it) Surveys say…
Sends the right message to employees (employer understands issues of traffic congestion, environment, money savings)
While other employee programs are curtailed—easy choice to keep the ones that save
everyone money.
Average Commute in US: 15 miles.*
*Bureau of Transportation Statistics
The car that gets you to work emits 22 pounds of CO2 per
gallon.*
*Average, US EPA
This equates to roughly 20 pounds of CO2 each way or
40 pounds round trip.
…40 pounds adds up over time…
One day: 40 lbs. of CO2 not
emitted
One month: 920 lbs.
One year: 11,040 lbs.
Taking transit instead:
One employee/year: 11,040 lbs. of CO2 not emitted
Five employees/year: 55,200 lbs.
Fifty employees/year: 552,000 lbs.
Goal of Presentation
Leave with an understanding of:
The two options you have to administer a transportation benefit program
Steps to choose a third party benefits administrator (TPA)
Steps to self administer a benefit program
The interface with online enrollment through a TPA
Quick Review: IRS 132 (f)
-- Very Flexible --
2 Key Points
- Monthly maximum cannot exceed $230 (each for transit
and parking)
- No cash reimbursement
Three ways to offer the transit benefit:
A. pre-tax payroll deduction
B. subsidy, in addition to salary
C. a combination of the two
Two Options for setting up your transit benefit program
1. Have someone else do it for you—through a third-party administrator
-- Multiple worksites-- Larger companies
2. Administer it yourself
-- Less than 100 employees-- You have one work site
Self administration: Do it Yourself…
9 steps to setting up your program
#1 Choose the type of program #1 Choose the type of program
Debit Cards
- IRS considerations
Transit Passes
- Available from all transit agencies
Vouchers
- Universal acceptance
#2 Get management approval #2 Get management approval
#3 Identify key personnel #3 Identify key personnel
#4 Create and distribute survey/enrollment form#4 Create and distribute survey/enrollment form
#5 Tabulate surveys#5 Tabulate surveys
#6 Arrange for payroll to establish a deduction code#6 Arrange for payroll to establish a deduction code
#7 Order vouchers, passes or debit cards#7 Order vouchers, passes or debit cards
#8 Distribute benefit to employees#8 Distribute benefit to employees
#9 Update your personnel policy handbook#9 Update your personnel policy handbook
Have someone else do it for you
Selecting a Third Party Administrator
#1 Research options #1 Research options
Talk with your payroll or FSA provider
Network with other companies to find out about their TPA
Talk to HR associations
#2 Plan your program #2 Plan your program
Who is eligible?
Full-timers; part-timers, temp workers (no consultants)
Which company branches?
Who approves?
Which internal staff are affected—payroll, HR?
How will you publicize the program?
New employee packet; intranet, employee newsletter, etc.
#3 Meet with a representative #3 Meet with a representative
Make sure to understand plan details:
Costs/fees (start up, PPPM)
Timeframes (start up; deadlines)
Contract period
Your responsibilities (file transfer; payment schedules)
Payment options (ACH transfer, invoice, etc.)
#4 Sign agreement#4 Sign agreement
#5 Increase your success#5 Increase your success
Meet…
Plan...
and Publicize…
….for maximum participation
How an Online
Ordering Platform
Works… for You and
Your Employees.
• Enrollment Deadline: Enrollment Ends
• Reports Available Two Days Later- Orders/Deductions- Invoice
• Payment by 15th of the month- ACH Debit (ACH “Pull” or push)
• Fulfillment: 18th – 25th of the month- Orders shipped
Employer’s Monthly Schedule
Employer’s Administrative Site
Login anytime - Upload new hires, delete terms…
Excel Document
Employer’s Administrative Site
…Generate Reports
Excel Document
Needed from Employer prior to program roll-out• First and Last Name• Day and Month of Birth (i.e. 2/20 is sufficient)• Home Address• Employee ID • Email address
This information is necessary to recognize the user as your employee, and as someone authorized to enter the website and initiate participation
Compromising personal information is NEVER collected
File of Eligible Employees
Sample Implementation Timeline
January 2010 fulfillment, using a 1st of the month enrollment deadline TIMEFRAME
Employer provides signed CCD Service Agreement and ACH Authorization Nov 4 or earlier
Implementation Manager (IM) assigned by CCD, uploads Employer’s file of eligible employees to secure website, provides employer with communications materials to be used during program roll-out
~ Nov 10
Employer announces program to employees, distributes communications Nov 11
Enrollment period: employees select their benefit Nov 11 – Dec 1
Enrollment Deadline for January Service Dec 1
Employer receives email stating that Deduction Report & Invoice for January order are available for download
Dec 3
If pretax benefit, Employer takes deductions Dec 3 – Dec 15
Employer pays invoice Dec 15
CCD ships employees’ January orders ~ Dec 18
Employees receive their orders at the address they direct, electronic products are loaded, all in time for easy January usage
Dec 21– 27
Employees use their fare media, debit or smart card, or redeem their vouchers for fare media or vanpool participation
January 1 or earlier
Employees manage their account in advance of the month of service.
They must enroll by an enrollment deadline occurring anywhere from the 1st to the 10th of the month that precedes the month of service
Always by 11:59pm!
“Rolling” Enrollment
May
5
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY
1
8963 42
12 15141310 119
19 222117 1816 20
26 292824 2523 27
30
Employee’s User Experience
Online Enrollment Platform
• Click on “New Participant Registration”, fill in fields as prompted
• Must be completed by the enrollment deadline--in the month prior to the month in which employee intends to use the benefit
Employees Are “Qualified”
• The data the employee provides here needs to match data supplied by employer in advance of program roll-out
Password-Protected Homepage
This employee is clicking on “transit order”
Select Metro Area
Chose Provider, then Product
• Transit voucher, pass, smart card loading, debit card…
Agree to Terms and Conditions
Mark Order to Recur Automatically
Indicate When No Benefit is Desired
• Up to one year in advance• Vacation, leave of absence, maternity leave, etc.
Uncheck the month in question
Summary Page
What we’ll deliver
Where we’ll deliver
• The initial enrollment process takes 5 min. or less
• Subsequent logins for changes take 3 min. or less
Also consider including bicycling—it is now covered up
to $20 a month!
(But there is a caveat)
Final Points
Participate in a Guaranteed Ride Home Program
1. Many programs are free
2. It pays for taxi or car rental in case of emergency at home
3. Check with your local TMA
Final Points
“The mode of transportation that you choose has a greater effect on the
environment than any other decision you make as a
consumer.”
-Union of Concerned Scientists