Commuter benefits in a hybrid work world

For businesses that will be returning to the office, there are many variables to consider as employers and employees look to renew or update their commuter benefits program.

As the world adjusted to remote work in 2020 due to the COVID-19 pandemic, so did the employee benefits landscape. From health to retirement and everything in between, employees were looking to their employers for guidance and answers. With the rise in remote work the role of specialized benefits like commuter benefits changed drastically. As we look forward, it is important for employers, benefit-providers, and transit authorities to think creatively around what’s next for commuter benefits.

At this point employers should have communicated to their remote workers to consider pausing or canceling their tax-exempt commuter benefit dollars. Over the last year, this was likely not top-of-mind for most employees as other priorities took center stage. What’s next for commuter benefits depends on the individual and their employers’ return to work policy. If an employee has transitioned to 100% remote work, they may no longer have a need for the mass transit or parking benefits they once enrolled in.