As an employer, if you set up a Commuter Tax Benefit program, you will save money and so will your employees. You will be able to save money by reducing payroll taxes. Your employees will be able to take home more income by using pre-tax income to pay for transit and vanpool fares and parking costs.

Please use the following to calculate annual estimated employer tax savings.

1.	Estimate the percent of your employees that make more than $89,500 annually. This, as a decimal, is your non-FICA workforce.
2.	Calculate transit and vanpool program savings.
	1.	Estimate the number of employees who will participate in this program. This is the number of transit participants you will have.
	2.	Please enter the amount of money (use a whole dollar amount), on average, each of your employees will put into the transit and vanpool pre-tax program per month. The amount for transit and vanpool fares must not exceed $125. This is the transit cost.
	3.	Transit and vanpool program savings = (1 - non-FICA workforce) x (transit participants x transit cost x 1.014)
3.	Calculate parking program savings.
	1.	Estimate the number of employees who will participate in this program. This is the number of parking participants you will have.
	2.	Estimate the amount of money, on average, each of your employees will put into the parking cost pre-tax program per month. The amount for parking costs must not exceed $240. This is the parking cost.
	3.	Parking program savings = (1 - non-FICA workforce) x (parking participants x parking cost x 1.014)
4.	Calculate your administrative costs.
	1.	Estimate the number of hours you expect your human resources staff to spend per month on implementing these programs. Multiply this number by 12. This is the hours per annum your staff will spend administering these programs.
	2.	What is average annual salary for human resources specialist personnel at the company. (National average is $37,700) Divide this number by 2,080. This is the hourly rate.
	3.	Administrative costs = hours per annum x hourly rate
5.	Calculate estimated employer tax savings.
	1.	Estimated employer tax savings = transit and vanpool program savings + parking program savings - administrative costs
		If this number is negative, it is the amount this program will cost you per year.
For example:
1.	Non-FICA workforce
	1.	10% of my employees who make more than $89,000 annually, my non-FICA workforce = .1
2.	Transit and vanpool program savings
	1.	50 employees who will participate in the transit/vanpool program
	2.	Each of these employees will set aside $60 per month in the program
	3.	My transit and vanpool program savings
		= (1-.1)(50 x 60 x 1.014) = (.9)(3,042) = $2,737.80
3.	Parking program savings
	1.	100 employees who will participate in the parking program
	2.	Each of these employees will set aside $120 per month in the program
	3.	parking program savings
		= (1-.1)(100 x 120 x 1.014) = (.9)(12,168) = $10,951.20
4.	Administrative costs
	1.	A staff that spends 4 hours per month or 48 hours per annum on program administration
	2.	On average, human resources staff is paid $37,700 per year or an hourly rate of $18.13
	3.	administrative costs
		= 48 x $18.13 = $870.24
My estimated employer tax savings annually = $2,737.80 + $10,951.20 - $870.24 = $12,818.76 annually