This article spoke about tax-free commuter benefits offered to employees, which has also helped to recruit and retrain workers. The trend in which these benefits have been offered has increased since 2006, it is both beneficial to the company and the employee in which they find themselves saving an average of 30% of their commuting costs. How it works is that some of the expense is covered through the employee’s pretax salary, and the rest is paid after taxes.
With the rising prices of gas and people commuting farther to work, I believe that an employer sponsored program like this is great for the people; it helps them save and manage the heavy costs of commuting to work each day. Like they mentioned in the article as well, it is also a key tool for employers in recruiting and retaining employers. Employee turnover and absenteeism is a major issue with companies throughout the nation in which they lose a fortune replacing and re-hiring employees. A program that offers tax-free commuter benefits can be a crucial determinant in the recruitment side of hiring, and can help improve retention rate for the company.
Through the eyes of an HR manager, whose partial role in a company is to promote high ethical standards to meet objectives and profit goals, a program like this is great for their employees and certainly matches the criteria. It is another opportunity to help out their employees and in return in also benefits the company a great deal. The tax-free commuter benefits may not seem as much, but when we realize were saving almost 30% of our communing expenses, it can really make it easier for people to choose a job with traveling not becoming a deterrent. It is also a chance for employers so attract greater talents to their company. This program sound like a good idea for the overall well-being of the company and I would not be surprised if the rate of adopting towards this benefit continues to grow among companies nation wide. [continues]
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(2011, 06). Tax Free Benefits. StudyMode.com. Retrieved 06, 2011, from http://www.studymode.com/essays/Tax-Free-Benefits-712292.html
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