Going green and saving money typically don't go hand in hand.
Buying alternative-fuel vehicles, for example, costs thousands of dollars more than traditional gas-powered autos. And even compact fluorescent light bulbs cost a few times more than incandescent light bulbs.
But what if there were a way to save money and go green? And what if you could park the car and enjoy a more relaxing commute?
Those are three advantages of the Qualified Transportation Benefits program. Employees can have a certain amount of money deducted from each paycheck - pre-tax - to put toward eligible expenses like parking fees, bus fares or train passes.
Many states, city and county governments and private-sector companies have started QTB programs, the newest trend in employee benefits that helps employers reduce FICA taxes and employees save hundreds of dollars annually.
Participants can deduct a monthly maximum of $230 for parking, $230 for transit or participate in both programs. These funds are deducted before taxes, which mean employees also will see a reduction in their federal and state tax bills.
"Most participants are really interested in cost savings, but many are also going green," said Kanisha Jones, a QTB specialist at Fringe Benefits Management Co. "It's really an untapped market."
It's only a matter of time before QTB programs catch on. Signing up takes just a few minutes and can be done online. Once a participant has established an account, they can reorder each month or choose a recurring deduction.
Convenience is another plus: all parking and transit passes are mailed to a participant's home or work address.
City and County of San Francisco employees are a model for the country to follow. Commuters often drive in from the suburbs, park at a public transportation lot and then take a bus, train or ferry to work.
Nearly 20 percent of CCSF's 27,000 employees participate in one or both of the commuter options.
One reason for the success in San Francisco is an aggressive marketing effort. Adeline Canez, San Francisco's TDM Coordinator, said her department has done more than just attend benefits fairs and pass out fliers. She meets with new employees during orientation, makes presentations to veteran employees and also e-mails human resource officers and department heads, encouraging them to pass on the word of QTB's benefits.
And, of course, a $45 voucher that CCSF offers for first-time participants is an enticement.
"Often they don't understand the concept, they don't quite understand the process," Canez said of many first-time participants. "But once they start using it, they enjoy the convenience and the green advantages."
So whether you want to save money, go green or get away from the stop-and-go drive to and from work, a QTB program is worth considering for your employees.
Canez said CCSF is helping make San Francisco a cleaner and healthier place to live.
"We use commuter benefits as a green initiative," Canez said. "Fifty-one percent of carbon dioxide emissions in San Francisco are auto-created. Our clean air program is all about reducing that. We want to increase the number of people who are using public transportation."
Barbara L. Gonzales, GBA, CEBS, chief operations officer for FBMC, agreed.
"We must find ways to insure against the risks we create with our excesses," Gonzales said. "One way is to embrace commuter benefits. If we use public transportation, we are doing our part to protect our environment and we're reducing our personal tax liability as well as our employer's tax liability."
Bob Ferrante is a writer/editor for Fringe Benefits Management Co.
