Section 1: Input Employer Information

Step 1: EMPLOYER INFORMATION

If your organization has multiple locations, you may select "Nationwide" for "Your Location." The calculator then uses national default values for tax rates, parking costs, and other factors to provide an estimate of the results for your entire organization. For more accuracy, you may also run the calculator separately for each work site location.

Please note that the calculations are estimates designed for internal use. Additionally, the information presented here does not constitute official tax guidance or a ruling by the U.S. government. Taxpayers are urged to consult with the Internal Revenue Service of the U.S. Department of Treasury or a tax professional for specific guidance related to the federal tax law.

Your Location
XYour Location

Your location affects the financial benefits that your organization and employees achieve with a commuter program. State corporate tax rates and employee income tax rates are used to calculate tax savings. The type of location affects expected program participation and typical office space costs.
In which state are you located?
In which type of location?

XYour Organization/ Tax Information

Organization type affects your potential tax savings. If your organization is for-profit, you must identify your federal corporate income tax rate or corporate net income. If unknown, use the default rate of 34%. Based on the state you selected, the calculator computes your marginal (federal and state) tax rate using state averages. You may change the value for your tax rates if the actual rates are known.
Your Organization / Tax Information
What type of organization are you?

Select:
Your Federal corporate income tax rate
- OR -
Your annual corporate net income
Calculated marginal federal corporate tax rate   %
State corporate income tax rate %
Marginal corporate tax rate %

XYour Employees

Employee salary information is used to calculate employer and employee tax savings. The percentage of employees making under $90,000 is important since Social Security taxes do not apply on income above $90,000 per year. Payroll taxes are paid by employers and employees in equal amounts: 6.2% of wages up to $90,000 per year for Social Security and 1.45% of all wages for Medicare. Based on your inputs, the calculator computes your employees' marginal tax rate using state averages. You may change the values if more accurate figures are known.
Your Employees
How many employees do you have?
What is the average salary? $
What percentage of your employees make less than $90,000? %
Average marginal FICA for the employer and employee   %
Federal employee marginal income tax rate   %
State employee marginal income tax rate   %
Employee marginal income tax rate   %

XTravel Patterns

Employee travel patterns affect how many employees will use commuter programs (such as transit/vanpool benefit programs). Utilization depends on how many employees currently use an option like transit, as well as the expected increase in use. Note: The calculator estimates increases in participation assuming that no programs are currently in place.
Travel Patterns
How many employees take transit or vanpools to work?
How many employees bike or walk to work?

XParking Situation

Parking costs money. Even if parking is part of a building lease agreement or owned by your organization, it has a long-term cost in terms of land value, opportunities for other use, and maintenance. The kind of parking (surface, structure, underground) directly affects its cost. Default values are provided. You may substitute your own estimate if you know the market cost of parking in your location.
Parking Situation
XEmployee Paid Pre-Tax Benefit

Comparison of Pre-Tax Deduction vs. Employee Pays with Taxable Salary.
What type of parking do you provide for your employees?
What kind of parking do employees use?
Space cost ($/space-month) $
Employee contribution to parking cost ($/employee-month) $
Employer contribution to parking cost ($/employee-month) $
Cost of parking to employer ($/employee-month) $
Are employee parking payments made on a pre-tax basis? Yes  No

Section 2: Select Benefits

Place a check in the box next to benefits you would like to examine using the calculator.

Note: In order to meet the National Standard of Excellence in commuter benefits and qualify as one of the nations Best Workplaces for Commuters, you must select at least one primary benefit option and at least three supporting benefit options. "; You must also offer access to an Emergency Ride Home and ensure that 14% of your employees do not drive alone to work within 18 months of joining the program. To learn if you qualify, review the criteria for applying.

XEmergency Ride Home

Reducing the number of cars that your employees drive to work alone means that there will be employees arriving at work without their own private vehicles. Some employees may feel uncomfortable not having a vehicle at their disposal in case of unexpected events, such as illness of a family member or unscheduled overtime. Providing a ERH (e.g., taxi ride) in limited cases of emergencies or unscheduled overtime has cost effectively resolved this issue for many employers. You may not need to provide this service yourself—in some areas third-party agencies provide ERH services.
XEmployer-Paid Transit/Vanpool Benefits

Under this option, you agree to provide your employees at least $30 per month toward commuting via public transit or vanpool for employees whose actual commuting costs are $30 or more (you are encouraged to provide up to the IRS limit of $105 per month). If your employees' transit commuting costs are less than $30 per month, then you must cover the full cost of this lesser amount (e.g. $20 per month).
XParking Cash Out

When you provide this benefit, your employees may choose to "cash out" the value of employer-provided parking by foregoing parking, and receive the taxable cash value of the parking in return.
You may also provide a tax-free transit or eligible vanpool benefit up to the IRS allowable tax-free benefit per month instead of taxable cash, or a combination of vanpool/transit benefits and taxable cash.
This strategy works best in locations where parking costs are expensive (e.g., urban central business districts), when the parking is leased, and when eliminating a parking space can significantly reduce costs to you and provide a significant payout to your employees. Where parking is very inexpensive, this option may not be effective. You agree to provide the employee at least 75 percent of the actual saved parking costs, even if it is greater than $30.
XTelework

Allowing and encouraging your employees to work from home benefits both your company and your employees while reducing traffic and air pollution. Under this option, you agree to offer a telework program that reduces the number of commute trips by 6 percent. This means that for every 100 possible commute trips, six or more are avoided by teleworking. For example, in a 20-day month a 100-person firm has 2,000 possible commute trips (20 days x 100 people = 2,000 possible commute trips). To achieve a 6 percent participation rate, employees would work from home to avoid at least 120 of those commute trips (2,000 x 6 percent = 120 commute trips).
XEmployer-Defined Benefit Program

Recognizing that different strategies will work for different employers and in different locations, you may propose an alternative option or benefits package, as long as you and the Federal Team together can demonstrate that it will reduce the rate at which your employees drive alone to and from work at least as successfully as the other options, and that employees see the option as a significant workplace benefit. Options may include things like comprehensive shuttle services and very aggressive and successful ridesharing.
XRidesharing or Carpool Matching

Ridesharing involves carpooling (at least two people riding together in a car) or vanpooling (capacity of at least 6 people not including driver). Employers can help employees rideshare through a matching program designed to help employees locate others nearby with compatible schedules. Many regional rideshare organizations allow employers to register directly at no cost.
XEmployer-Paid Transit/Vanpool Benefits

This option is similar to that described above as a Primary Benefit Option. However, the employer may provide employees with a tax-free transit or vanpool benefit less than $30 per month per participating employee and need not cover full commuting costs.
X Parking Cash Out

This option is similar to that described above as a Primary Benefit Option. However, the employer may offer less than $30 per month for employees who do not park at work and less than 75% of the actual saved costs of parking (for example, offering $20 per month, if the market cost of parking is $40 per month).
X Shuttles from transit stations

Shuttles from transit stations help employees get to work by transit. Shuttles may be provided by the employer, or through a local transit agency or transportation management association. The calculator assumes that the employer works out an arrangement for the service but that the cost is not paid by the employer.
X Preferred parking for carpools / vanpools

Employers may encourage ridesharing by designating preferred spaces near the building entrance specifically for carpools or vanpools. The calculator assumes that there is no direct cost for implementation.
X Secure bicycle parking, showers and/or lockers

Employers may encourage bicycling to work by providing secure bicycle parking, showers, and/or lockers at the work site.
X Financial incentives for bicyclists or walkers

Employers may encourage bicycling and walking by offering gift certificates for a bicycle or walking shoes, coupons for discounts, or other prizes.
X Telework

This option is similar to that described above as a Primary Benefit Option. However, the program need not meet a 6% average participation rate.
Required Benefit to Meet National Standard of Excellence
Emergency Ride Home
Primary Benefit Options
Employer-Paid Transit/Vanpool Benefits
Enter how much monthly benefit $

Parking Cash Out
Enter how much monthly benefit - default is 75% of parking cost $

Telework
Enter percent of employees teleworking full-time %
Enter percent of employees teleworking part-time %
Enter average days teleworking per week for part-time teleworkers
Percent of employees teleworking on an average day %

Employer-Defined Benefits Program
Employer Defined Benefits Program    Benefits and costs of this option cannot be calculated at this time.
Supporting Benefit Options
Ridesharing or Carpool Matching

Employer-Paid Transit/Vanpool Benefits
Employer-Paid Transit/Vanpool Benefits SELECTED AS PRIMARY BENEFIT
Enter how much monthly benefit $

Employee Pre-Tax Payroll Deduction for Transit/Vanpool Expenses
XEmployee Pre-Tax Payroll Deduction for Transit/Vanpool Expenses

An employer may allow employees to reserve up to $105 of income per month on a pre-tax basis to pay for transit and vanpool expenses. Employees do not pay federal income or payroll taxes on this money, and the employer pays no payroll taxes.
Enter average employee pre-tax contribution ($/employee-month) $
Note: Must be no more than $

Parking Cash Out
Parking Cash Out SELECTED AS PRIMARY BENEFIT
Enter how much monthly parking cash-out $

Shuttles from transit stations

Preferred parking for carpools / vanpools

Secure bicycle parking, showers and/or lockers
Type of facility:rack or locker
Designed for how many bikes

Financial incentives for bicyclists or walkers
Enter level of incentive per month $

Telework
Teleworking SELECTED AS PRIMARY BENEFIT
Enter percent of employees teleworking full-time %
Enter percent of employees teleworking part-time %
Enter average days teleworking per week for part-time teleworkers
Percent of employees teleworking on an average day %

Section 3: Estimate Participation

X Estimated Participation

The calculator estimates how travel behavior would change upon implementing the commuter benefit programs you selected, based on EPA's Commuter Model. The calculator assumes that you started with no commuter programs.
As a result, if your organization already has a commuter benefit program, which influenced your starting transit/vanpool share, you should select at the low end of the range to represent the increase in transit/vanpool use. The estimated range was developed by examining program scenarios for employers in different types of metropolitan areas.
Based on information about your work site and the benefits you selected, we have estimated the following participation levels.

Because work sites vary widely and participation depends on site-specific considerations like access to transit, a range of results is provided. You may change the estimated participation levels based on the range and personal assessment of your organization.

Transit / Vanpool Users
      Existing number prior to benefits
Increase due to benefits (range:)
Total after benefits

Bicyclists / Pedestrians
Existing number prior to benefits
Increase due to benefits (range:
Total after benefits

Teleworkers (due to implementing program)

Reduction in Number of People Driving to Work (range:)

Section 4: Results Summary

Generate printable report.
Congratulations! Based on the programs you selected, your work site might meet the " National Standard of Excellence, potentially qualifying your organization as one of The Best Workplaces for Commuters. " Please visit the Do We Qualify? page to see if your organization can receive the Best Workplaces for Commuters designation."
Based on the benefits you selected, your organization would not meet the National " Standard of Excellence for commuter benefits. To qualify as one of the nation's Best" Workplaces for Commuters, you would need to:

  • select one or more PRIMARY BENEFIT OPTIONS.
  • select three or more SUPPORTING BENEFIT OPTIONS.
  • under Transit/Vanpool Primary Benefits: Provide at least $30 per month in benefits.
  • under Teleworking Primary Benefits: Offer a teleworking program that meets or exceeds a 6% average participation rate.
  • under Parking Cash Out Primary Benefits: Offer at least $30 per month, and at least 75% of the actual saved costs of parking
  • under Parking Cash Out Primary Benefits: Offer at least $32.50 per month, and at least 75% of the actual saved costs of parking
  • select Access to Emergency Ride Home Program.

  • Edit your program information or learn more about how to qualify for Best Workplaces for Commuters."
    Based on the benefits you selected, your organization would not meet the National " Standard of Excellence for commuter benefits. " Your work site would need to offer one or more additional benefits, or achieve higher participation, " in order to qualify as one of The Best Workplaces for Commuters.


    You may read more information on what to do to qualify

    For the commuter benefits you selected, below is a summary of costs and benefits for your organization, your employees, and your community.

    Overview of Total Annual Costs and Benefits
    Employer Costs and Savings Employee Benefits
    Employer Costs (annualized)
    Direct Employer Savings
    Potential Facility Cost Savings
    Recruitment & Productivity Benefits

    Net Employer Cost (Savings) Direct Benefit to Employees
    This benefit package could result in a net savings for you, as an employer, while providing substantial benefits to your employees.

    Each $1.00 invested by the employer on the selected commuter benefits produces $ of employee benefits


    Direct Costs and Savings

    EMPLOYER COSTS AND BENEFITS


    EMPLOYEE BENEFITS

    Incentive Costs Value of Incentives to Employees
    Cost of transit/vanpool benefits ($/year) Value of transit/vanpool benefits ($/year)
    Cost of Parking Cash Out ($/year) Value of Cash Out benefit ($/year)
    Cost of bicycle/walk incentives ($/year) Value of bicycle/walk incentives ($/year)
    Value of tax savings from pre-tax transit/vanpool benefits
     
    Administrative Costs
    Program administration time (hours per month)
    Annual program administration cost
     
    Equipment Costs
    none
    One-time cost of home-offices (start up)
    Annualized cost of home-offices
    One-time cost of bicycle racks/lockers (start up)
    Annualized cost of bicycle racks/lockers
     
    Direct Savings
    none
    Tax savings from reduced FICA ($/year)
    Employee Gas and Auto Maintenance Cost Savings
    Reduction in employee driving expenses / month
    Reduction in employee driving expenses / year
     
    Employee Parking Cost Savings
    Reduction in parking expenses per employee per month
    Reduction in employee parking expenses per year

    For More Details or to Change Assumptions

    Potential Facility Savings
    Parking Cost Savings
    Expected number of parking spaces reduced
    Potential Parking Cost Savings ($/year)
    Building Space Cost Savings
    Reduced Office Space (square feet)
    Potential Building Cost Savings ($/year)

    For More Details or to Change Assumptions

    Recruitment and Productivity Benefits
    Recruitment Benefits
    Percentage reduction in employee turnover rate%
    Recruitment/Training Cost Savings ($/year)
    Increased Worker Productivity
    Percent change in productivity per employee teleworking
    Increased Productivity ($/year)

    For More Details or to Change Assumptions

    Community Benefits
    Reduced Traffic
    Reduced commute vehicle trips
    Reduced commute vehicle mileage
     
    Reduced Energy Consumption
    Reduced gallons of motor fuel consumed
    Reduced barrels of crude oil used
    Reduced Urban Air Pollutant Emissions (lbs./year)
    Reduced CO (carbon monoxide)
    Reduced VOC (volatile organic compounds)
    Reduced NOx (oxides of nitrogen)
     
    Reduced Greenhouse Gas Emissions (lbs./year)
    Reduced CO2 (carbon dioxide)

    For More Details or to Change Assumptions



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    SITE INFORMATION INPUTS

    State located:
    Type of location:
    Type of organization:
    Marginal federal corporate tax rate:
    State corporate income tax rate:
    Number of employees:
    Average salary:
    Percentage of employees making less than $90,000:
    Average marginal FICA for the employer and employee:
    Federal employee marginal income tax rate:
    State employee marginal income tax rate:
    Employee marginal income tax rate:
    Number of employees taking transit or vanpools to work:
    Number of employees biking or walking to work:
    Type of parking provided for employees:
    Kind of parking employees use:
    Parking payments are treated on a pre-tax basis. Parking payments are NOT treated on a pre-tax basis.
    Space cost:
    Employee contribution to parking cost:
    Employer contribution to parking cost:
    Cost of parking to employer:



    PROGRAM SELECTION INPUTS

    Required Benefit to Meet National Standard of Excellence
    Guaranteed ride home selected!
    Required benefit not selected!
    Primary Benefit Options
    Employer-Paid Transit/Vanpool Benefits

    Parking Cash Out

    Teleworking
    Percent of employees teleworking full-time:
    Percent of employees teleworking part-time:
    Average days teleworking per week for part-time teleworkers:
    Percent of employees teleworking on an average day:
    Cost of setting up and maintaining a home office:

    Employer Defined Benefits Program SELECTED
    Supporting Benefit Options
    Ridesharing or carpool matching SELECTED

    Employer-Paid Transit/Vanpool Benefits

    Employee Pre-Tax Payroll Deduction for Transit/Vanpool Expenses

    Parking cash out


    Shuttles from transit stations SELECTED

    Preferred parking for carpools / vanpools SELECTED

    Secure bicycle parking, showers and/or lockers
    Type of facility: Rack Locker


    Financial incentives for bicyclists or walkers

    Telework
    Percent of employees teleworking full-time:
    Percent of employees teleworking part-time:
    Average days teleworking per week for part-time teleworkers:
    Percent of employees teleworking on an average day:
    Cost of setting up and maintaining a home office: