Are high commuting costs and gas prices concerning you? You're not alone. Nearly three-quarters of Americans are experiencing some financial hardship and more than four in 10 are experiencing significant financial hardship because of rising gas prices, according to a recent Associated Press poll.
And when you consider that the average family is spending $110 more per month on gas than they were six months ago, that statistic makes a lot of sense.
As benefit experts, we know all about how commuter benefits can be used to help mitigate rising transportation costs. My fear is that the average consumer (i.e. many of your colleagues) has no idea how these benefits can be used because, like with other pre-tax benefits, many of the eligible participants never take advantage of the program.
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Why the low enrollment rate? It's likely that education about the benefit plays a big factor.
At times like this, when gas prices and financial frustration are high, there's a great opportunity to use the communications vehicles open to HR – staff meetings, internal newsletters, company website, e-mail and more – to alert your coworkers to the ability to save on public transportation and parking.
Make sure employees know that utilizing the account can save them up to 40 percent on the following commuting costs: subway, train, bus, ferry, and vanpool as well as parking near public transportation or the workplace. National "Dump the Pump Day" – which will be held on June 16 this year – is a great time to suggest to employees who drive to work that they can save money by switching to public transportation and using a commuter benefit.
Unlike other pre-tax benefits, which require participants to sign up at a particular time and commit for a year, commuter benefits allow participants to sign up and leave the program on a monthly basis—at ANY time of year. Thus, it's an easy sell to suggest that someone try out the benefit at the time of year when gas prices are the highest.
Will using a pre-tax commuter benefit be enough to quell the heart palpitations you get when you see the total after filling up your car? With total savings ranging from $1,800 to $2,200 per year by contributing the maximum to parking and transit benefits, we sure think so!
For more information on commuter benefits, please visit www.gowithcx.com.
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