Clarity Benefit Solutions, Offers Advice on Choosing the Right Commuter Benefits Plan

NEW YORK, Sept. 15, 2017 /PRNewswire-iReach/ -- Commuter benefits provider, Clarity Benefit Solutions, offers advice on choosing the right commuter benefits plan.

Commuter benefit plans are a wonderful opportunity for both employers and employees to save money. By encouraging employees to use alternate methods to commute to work—such as public transportation, carpool, and bicycle—significant amounts of money can be saved. Pre-tax dollars can be used to pay for commuting expense via an employee-paid payroll deduction; a tax-free, employee-paid subsidy; or a combination of both methods.

Federal laws mandate that qualified transportation benefits meet the following criteria: a transit pass be subject to specific conditions; transportation in a commuter highway vehicle must pertain to travel between the employee's residence and workplace; qualified parking; and any qualified bicycle commuting reimbursement of up to $20 per month (not available with any other qualified transportation benefit).

There are several factors to take into account when choosing the best commuter benefits plan. Employers should first determine how much it will cost as well as how much money it will save the company. A business owner should examine the company's savings from an annualized perspective by taking the average election for each employee (minus any administration fees). Work with a benefits administrator to determine available transportation options accessible at all company locations, and which options are best to offer employees. An ideal program will include all forms of pre-tax transportation, such as transit, ride sharing, and car- and van-pooling—and will also cover parking benefits.

The business owner then must choose the best method to administer the commuter benefits program. Self-administration is an option, but often proves challenging. The IRS now requires more stringent tracking of qualified transportation benefits.  Monitoring an internal debit card solution or buying transit passes in bulk can be time-consuming and stressful. Working with a benefits administrator can streamline the process. Funds can be made available as they are deducted from payroll. A benefits administrator can also keep current with changing transit law regulations, and inform business owners of any changes.

About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.

Media Contact: Calvin Clark, Clarity Benefit Solutions, 732-428-8272,

News distributed by PR Newswire iReach:


SOURCE Clarity Benefit Solutions



Insurance, Human Resource & Workforce Management, Health Care & Hospitals

Need Help