Employer Transit Benefits Toolkit. Brought to you by godcgo

Employer Transit Benefits Toolkit Brought to you by godcgo Effective October 2014

Dear Employer, As part of The Sustainable DC Act of 2014, the District of Columbia is excited to announce a new Commuter Benefits Ordinance which requires businesses with more than 20 employees located in Washington, DC to offer commuter transit benefits to their employees. The purpose of this toolkit is to inform DC business owners, government agencies and employer benefit representatives about implementing DC s new Employer Transit Benefit Ordinance. This is an opportunity for employers to offer additional employee benefits, be recognized as a sustainable member of the community and attract and retain talent. It gives employees a chance to save money by doing something they already do every day commute to and from work. By January 1, 2016, DC employers with more than 20 employees will be required to provide one of three commuter benefit options, all of which are outlined in this guide: 1. Employee-Paid Pre-Tax Benefit 2. Employer-Paid Direct Benefit 3. Employer-Provided Transportation We hope you will take this opportunity to see this as a benefit to your employees, to the community and your organization! Sincerely, The godcgo Team

Table of Contents: Follow us @godcgo #transitbenefits 01 02 07 10 11 15 17 01 Background 02 Official Language 07 Benefit Option #1: Employee-Paid Pre-Tax Benefit 10 Benefit Option #2: Employer-Paid Direct Benefits 11 Benefit Option #3: Employer-Provided Transportation Service 15 What else can your organization do? 17 Capital Bikeshare & godcgo Resources

District of Columbia Employer Transit Benefit Ordinance Official Language: Background What are Commuter Benefits? Commuter Benefits are federally approved employer-provided incentives for employees to reduce their monthly commuting expenses for transit, vanpool, biking and parking. Employers can offer employees a range of pre-tax or direct transit benefits, depending on what works best for the organization or company culture and budget. What are the advantages? 1) Reduced Cost and Tax Savings a. Companies see a tax savings on FICA, Federal income and state income taxes b. Benefit is low cost or negligible cost for companies to offer compared to other employee benefits c. Employees save money by reducing the out-of-pocket expense of transit and commuting to-and-from work d. The more options an employee has to commute to work, the fewer parking spaces are needed. Organizations can reallocate money currently being used to subsidize parking and provide transit benefits Advantages: Reduced costs and tax savings, talent recruitment, retention and recognition. 2) Recruitment and Retention a. Cost-effective tool for increasing job satisfaction and helping recruit and retain employees b. Employees who take transit to work are healthier than those who drive alone and experience less stress 3) Recognition a. Employers that offer transit benefits are seen by the public, competitors, current and future employees as forward-thinking and sustainability-minded b. The award for Best Workplaces for Commuters is given to organizations that offer commuter programs and meet the National Standard of Excellence criteria c. The US Green Building Council (USGBC) provides Leadership in Energy and Environmental Design (LEED) credits for sustainable employee transportation programs d. By encouraging employees to use transit as the preferred method of traveling to-and-from work through a commuter benefits program, employers are directly decreasing traffic congestion, improving air quality and making our city a better place to live TITLE III. EQUITY AND DIVERSITY. SUBTITLE A. REDUCING SINGLE OCCUPANCY VEHICLE USE BY ENCOURAGING TRANSIT BENEFITS. Sec. 301. Definitions. For the purpose of this subtitle, the term: (1) Covered employer means an employer with 20 or more employees; provided that the Mayor may issue rules pursuant to section 303 to expand the definition to include employers with fewer than 20 employees. (2) Employee shall have the same meaning as provided in section 3(2) of the Minimum Wage Act Revision Act of 1992, effective March 25, 1993 (D.C. Law 9-248; D.C. Official Code 32-1002(2)). (3) Employer shall have the same meaning as provided in section 3(3) of the Minimum Wage Act Revision Act of 1992, effective March 25, 1993 (D.C. Law 9-248; D.C. Official Code 32-1002(3)). (4) Transit pass shall have the same meaning as provided in section 132(f)(5)(A) of the Internal Revenue Code, approved July 18, 194 (98 Stat. 877; 26 U.S.C. & 132(f)(5)(A)) ( Internal Revenue Code ), and shall include transit passes for travel by bus, streetcar, or train by the Washington Metropolitan Area Transit Authority, Maryland Area Regional Commuter, Virginia Railway Express or the National Railroad Passenger Corporation (Amtrak). (5) Vanpool means a commuter highway vehicle within the meaning of section 132(f)(5)(B) of the Internal Revenue Code. Sec. 302. Transportation benefit program. 1) By January 1, 2016, a covered employer shall provide at least one of the following benefit programs to its employees: (1) A pre-tax election transportation fringe benefits program that provides commuter highway vehicle, transit or bicycling benefits consistent with section 132(f)(1)(A), (B) and (D) of the Internal Revenue Code at benefit levels at least equal to the maximum amount that may be deducted for those programs from an employee s gross income pursuant to section 132(f)(2) of the Internal Revenue Code; (2) An employer-paid benefit program whereby the employer supplies, at the election of the employee, a transit pass for the public transit system requested by each covered employee or reimbursement of vanpool or bicycling costs in amount at least equal to the purchase price of a transit pass for an equivalent trip on a public transit system; or (3) Employer-provided transportation at no cost to the covered employee in a vanpool or bus operated by or for the employer. Who is required to comply? Businesses (including nonprofits) with addresses in the District of Columbia with 20 or more employees are required to comply by January 1, 2016. 01 02

What are the Options for Commuter Benefits? Benefit Option #1: Employee-Paid Pre-Tax Benefit Commuter benefits in the form of employee-paid pre-tax deductions are federally approved employer-provided incentives for employees to reduce their monthly commuting expenses for transit, vanpool and parking. Employees have an option to set aside $130/month in pre-tax funds through their paycheck each month for their transit or vanpool expenses or $250/month for parking expenses. By doing so, taxable income is reduced, which translates to a travel savings of up to 40 percent. As a result, business payroll taxes decrease, so you may see up to 9 percent savings for each employee participating in the benefit. Did you know? Employer payroll taxes decrease by as much as 9 percent for each participating employee. Employees can save up to 40 percent on commuting costs. Implementing an Employee-Paid Pre-Tax Benefit Employees have the option to set aside pre-tax funds each month to pay for their transit, vanpool or parking each month through their paycheck. By doing so, taxable income is reduced, which can mean employees save up to 40 percent on commuting costs. By having a pre-tax benefit for employees, business payroll taxes decrease as much as 9 percent for each employee participating in the benefit. 1) Decide Who Will Administer the Benefit a. Employer Managed i. What you do: Decide parameters of the program such as which benefits to offer, enroll employees, make payroll deductions, purchase benefit from vendors, distribute to employees and answer questions about benefits ii. What the vendor does: Manages benefit products available for purchase iii. Pros: Low cost, easy to change orders on a monthly basis iv. Cons: Requires a higher amount of staff time to administer, limited benefit options available for purchase v. Best for: Small businesses b. Vendor Managed: This option places most of the responsibility on the vendor to administer and manage the benefits program, though there are still some tasks the employer will need to coordinate. i. What you do: Administer payroll deductions, coordinate with vendor, provide current list of eligible employees and inform employees of program ii. What the vendor does: Enroll employees, distribute benefit to employees, answer questions about benefits, responsible for IRS compliance iii. Pros: Minimal staff time to administer, employees manage their commuter accounts and deductions via the vendor s online platform iv. Cons: More costly option than employer managed benefits, vendors may require minimum number of employees to participate for a vendor managed program v. Best for: Businesses with more than 50 employees or any organization wanting to minimize staff time to manage benefits 2) Talk to Vendors: Contact vendors for program options and pricing information specific to your organization s needs. Employers are advised to contact vendors even if opting to manage internally to ensure that pre-tax funds are being utilized only for qualified transportation purchases. 3) Coordinate within Your Organization: Work with management and HR to decide what benefits to offer, whether pre-tax, subsidy or both, and determine the program administration process. a. Possible questions for executive management: i. Should the company administer the benefit or have a vendor manage the transit benefits program? Remember to compare the time that the employer administration will take to the cost incurred by outsourcing to a vendor. ii. Who will be the appointed staff person responsible for coordinating with vendors or employees? b. Possible questions for accounting or payroll team: i. How many pay periods do we have? ii. How will we do payroll deductions? Do we need a new deductions code? iii. Will we deduct from employee paychecks: monthly or bi-weekly? 4) Create a Commuter Benefits Policy: Create a written company policy to clearly define procedures and provide information to employees. Things to include in the company policy may include: a. Important dates and deadlines i. Paycheck dates ii. Enrollment date iii. Cancellation date iv. Changes deadline b. Contact information for internal and/or vendor support c. Availability of funds when an employee leaves the company or transfers d. Which employees are eligible to receive the benefit e. Probationary period, if required 5) Select a Vendor 6) Set Up Pre-Tax Deductions 7) Promote the Program to Your Employees: Employee outreach is critical to success. There are a variety of internal marketing and outreach techniques to apply within your organization. a. Update employee handbook to reflect new transit benefits and policies b. Announce at an all-staff meeting c. Send out an email announcement to staff and/or management d. Include notices in employee paychecks, mailboxes or intranet sites. e. Post flyers in break rooms, bathrooms, kitchen, conference rooms, message boards or any communal area. f. Include commuter benefits information in new-hire orientation g. Contact godcgo to help you create customized marketing for your organization! 03 04

8) Enroll Employees in the Program 9) Place Benefit Order and Distribute 10) Enroll in Guaranteed Ride Home: GRH (Guaranteed Ride Home) provides commuters who regularly vanpool, carpool, bike, walk or take transit (at least two days a week) with a reliable ride home when one of life s unexpected emergencies arises. Commuters can use the free GRH benefit for personal emergencies and unscheduled overtime up to four times per year. Best of all, the ride home by cab, rental car, bus or train is free (excluding gratuity, fuel and insurance charges as they apply). Benefits of the program: This program is an easy way to help your organization maintain productivity, increase morale and continue the flow of business. Offering a GRH program encourages employees to use alternative forms of commuting, such as carpooling and vanpooling, by giving them the peace of mind from knowing they have a way to get home if an emergency situation arises. As an added benefit to your employees, your organization can provide its own GRH program to supplement the Commuter Connections program. Questions? Call: 1-800-745-RIDE. þ Checklist #1: Implementing an Employee-Paid Pre-Tax Benefit Meet with staff within your organization. Who will be involved? Conduct an employee commute survey Decide how to administer the program Select a vendor Choose a staff member to coordinate with vendor Create a Commuter Transit Benefits Policy Set up pre-tax payments with payroll and vendor Communicate program to employees Employees sign up to participate Enroll in Guaranteed Ride Home 05 06

Benefit Option #2: Employer-Paid Direct Benefits Commuter benefits in the form of an employer-paid subsidy are federally approved employer-provided incentives for employees to reduce their monthly commuting expenses for transit, vanpool, biking and parking. Through this option, you can subsidize employee transit, vanpool and bike commuting costs. As with the employee-paid benefit, you do not pay payroll taxes and employees do not pay federal or payroll taxes on the benefit amount. IRS code states employers are able to directly offer employees up to $130/month for transit or vanpool; or $20/month for bicycling benefits. Employer subsidized programs are typically set up in one of the following ways: Employer directly purchases passes or vouchers for employees Employer funds a debit/credit card, transit or SmarTrip card for employees Employees submit receipts and request reimbursement for commuting costs on transit, vanpool or by bicycle Bicycle Subsidy Employers may reimburse bicycle commuters up to $20 per month tax-free for each month a bicycle is used for transportation to and from the employee s home and place of employment. Per IRS code, reimbursement may be for reasonable expenses incurred for the purchase of a bicycle, bicycle improvements, repair and storage. Bicycle commuters who elect to receive the bicycle subsidy are not eligible to receive any other transportation fringe benefit in the month they receive the bicycle subsidy. Reasonable Bicycle Expenses* Purchase of a bicycle Bicycle improvements, repair and storage *as long as the bicycle is regularly used for travel between the employee s residence and place of employment 1) Decide Who Will Administer the Benefit a. Employer Managed i. What you do: Enroll employees, make payroll deductions, purchase benefit from vendor, distribute to employees, answer questions about benefits ii. What the vendor does: Has benefit available for purchase iii. Pros: Low cost, easy to change orders on a monthly basis iv. Cons: Requires a higher level of staff time to administer, limited benefit options available for purchase v. Best for: Small businesses b. Vendor Managed i. What you do: Make payroll deductions, coordinate with vendor ii. What the vendor does: Enroll employees, distribute benefit to employees, answer questions about benefits iii. Pros: Minimal staff time to administer, employees manage their commuter accounts and deductions iv. Cons: More costly option than employer managed benefits, vendors may require minimum purchase v. Best for: Businesses with more than 50 employees or any organization wanting to minimize staff time to manage benefits 2) Talk to Vendors: Possible questions to ask vendors include: a. What is the cost per employee or participant? b. How will the subsidy be administered? c. What is the vendor s purchasing and payment process? d. What is the deadline for employees to enroll each month? e. Will the vendor distribute the direct benefit or the employer? f. What are the employer s responsibilities vs. the vendor? 3) Coordinate within Your Organization: Work with management and HR to decide on the program administration process. a. Possible questions for executive management: i. Should the company administer the benefit or have a vendor manage the transit benefits program? ii. Who will be the appointed staff person responsible for coordinating with vendors and employees? iii. What is our accounting process to implement this program? 4) Create a Commuter Benefits Policy: Create a written company policy to clearly define procedures and provide information to employees. Things to highlight in the company policy may include: a. Important dates and deadlines i. Paycheck dates ii. Enrollment date iii. Cancellation date iv. Changes deadline b. Contact information for internal and/or vendor support c. Availability of funds when an employee leaves the company or transfers d. Which employees are eligible to receive the benefit e. Probationary period, if required f. Reimbursement policy (IRS does not allow cash reimbursement of pre-tax funds) 5) Select a Vendor 6) Set Up Pre-Tax Deductions 7) Promote the Program to Your Employees: Employee outreach is critical to success. There are a variety of internal marketing and outreach techniques to apply within your organization. a. Update employee handbook to reflect new transit benefits and policies b. Announce at an all-staff meeting c. Send out an email announcement to staff and/or management d. Include notices in employee paychecks, mailboxes or intranet sites. e. Post flyers in break rooms, bathrooms, kitchen, conference rooms, message boards or any communal area. f. Include commuter benefits information in new-hire orientation g. Contact godcgo to help you create customized marketing for your organization! 8) Enroll Employees in the Program 9) Place Benefit Order and Distribute 10) Enroll in Guaranteed Ride Home: GRH (Guaranteed Ride Home) provides commuters who regularly vanpool, carpool, bike, walk or take transit (at least two days a week) with a reliable ride home when one of life s unexpected emergencies arises. Commuters can use the free GRH benefit for personal emergencies and unscheduled overtime up to four times per year. Best of all, the ride home by cab, rental car, bus or train is free (excluding gratuity, fuel and insurance charges as they apply). 07 08

Benefit Option #3: Employer-Provided Transportation Service Employer-provided transportation service can include vanpools from outside of DC limits or shuttles from Metro stations, Park-and-Rides, major hubs or anywhere else employees are commuting. þ Checklist #2: Implementing an Employer-Paid Direct Benefit Meet with staff within your organization. Who will be involved? Conduct an employee commute survey Decide how to administer the program Select a vendor Choose a staff member to coordinate with vendor Create a Commuter Transit Benefits Policy Communicate program to employees Employees sign up to participate Enroll in Guaranteed Ride Home What is a Vanpool? A vanpool is a group of four to 15 people who commute to and from work together in a van. Members of the vanpool group share the same commute and similar work hours. 1) Research local transportation options and other employer-provided services. A good place to start: a. Commuter Connections: offers ridematching services for carpools, vanpools and administers the Guaranteed Ride Home program; helps employers establish commuter benefit and assistance programs for their employees. 2) Map Employee Residential Locations: Once an employee survey has been completed there should be a general idea of where staff are commuting from, around what time of day and how many are interested in participating in a vanpool or shuttle option. 3) Determine the Service to Implement a. If possible, partner with nearby employers to save on costs b. Last mile service? For employers about a mile from the nearest transit station or bus stop, providing a shuttle service dramatically improves the quality of an employee s commute. 4) Create a Commuter Benefits Policy: Create a written company policy to clearly define procedures and provide information to employees. Things to highlight in the company policy may include: a. Important dates and deadlines b. Availability of service c. Employee eligibility d. Conditions of use e. Contact info for provider and emergency numbers 5) Promote the Program to your Employees: Employee outreach is critical to success. There are a variety of internal marketing and outreach techniques to apply within your organization. a. Update employee handbook to reflect new transit benefits and policies b. Announce at an all-staff meeting c. Send out an e-mail announcement to staff and/or management d. Include notices in employee paychecks, mailboxes or intranet sites. e. Post flyers in break rooms, bathrooms, kitchen, conference rooms, message boards or any communal area. f. Include commuter benefits information in new-hire orientation g. Contact godcgo to help you create customized marketing for your organization! 09 10

6) Enroll in Guaranteed Ride Home: GRH (Guaranteed Ride Home) provides commuters who regularly vanpool, carpool, bike, walk or take transit (at least two days a week) with a reliable ride home when one of life s unexpected emergencies arises. Commuters can use the free GRH benefit for personal emergencies and unscheduled overtime up to four times per year. Best of all, the ride home by cab, rental car, bus or train is free (excluding gratuity, fuel and insurance charges as they apply). þ Checklist #3: Employee Benefits of Vanpooling include: Reduced commute costs Potentially shorter commutes (if able to take HOV-2 or HOT lanes) Reduced carbon footprint Preferred parking Less time behind the wheel means more time to read, work, sleep or catch up on the news Employer Benefits of Vanpooling include: Economical solution to reduce parking requirements Lower employee commute stress Implementing an Employer- Provided Transportation Service Meet with staff within your organization. Who will be involved? Conduct an employee commute survey to determine: Number of employees High density locations Nearby transit options available Existing shuttles/vanpools Map employee residential locations Decide what type of transportation service to offer: shuttle or vanpool Select a vendor Choose a staff member to coordinate with vendor Create a Commuter Transit Benefits Policy Set up pre-tax payments with payroll and vendor Communicate program to employees Enroll in Guaranteed Ride Home 11 12

godcgo Contact Information godcgo Employer Services 1501 Wilson Boulevard, Suite 1100 Arlington, VA 22209 202-299-2186 info@godcgo.com www.godcgo.com RESOURCES: godcgo www.godcgo.com Capital Bikeshare www.capitalbikeshare.com DC Circulator www.dccirculator.com Washington Metropolitan Area Transit Authority www.wmata.com Commuter Connections & Guaranteed Ride Home www.commuterconnections.org League of American Bicyclists / Bicycle Friendly Business www.bikeleague.org/business 13 14

Enroll in Guaranteed Ride Home What Else Can your Organization Do? Telecommuting Compressed work weeks Flex-scheduling Carpooling Guaranteed Ride Home (otherwise known as GRH) provides commuters who regularly (twice a week) carpool, vanpool, bike, walk or take transit to work with a FREE and reliable ride home when one of life s unexpected emergencies arise. Commuters may take advantage of GRH up to four times per year to get home for unexpected emergencies such as a personal illness or a sick child. GRH can also be used for unscheduled overtime when your employer mandates that you must stay late. GRH is designed to rescue commuters who are worried about how they ll get home when an emergency arises. Knowing there s a guaranteed ride home allows one to use commuting options like transit and carpools with peace of mind and confidence. Best of all, the GRH service is FREE! Questions? Call: 1-800-745-RIDE www.commuterconnections.com Bike facilities Provide or partially subsidize carshare or bikeshare memberships Supplement the existing GRH program Parking cash out Invite godcgo to company benefits fairs* Provide commute information to all new hires Become a Bicycle-Friendly Business through the League of American Bicyclists *See page 20 for Event Participation Request Form 15 16

Corporate Memberships TM Corporate Membership Corporate Membership Purchase multiple annual memberships at a discount. Choose from four different levels of Corporate Membership. Purchase multiple annual memberships at a discount. Choose from four different levels of Corporate Membership. Corporate Membership $50 per employee CapitalBikeshare.com CapitalBikeshare.com Capital Bikeshare puts thousands of bikes at hundreds of stations at your employees fingertips. A Capital Bikeshare Corporate Membership gives your employees: A simple, low cost and reliable way to get around throughout the workday An environmentally friendly form of transportation A healthier lifestyle $ join. take. ride. return. Corporate Organization Employee Usage fees Membership pays pays covered by: Levels Corporate Organization Employee Usage fees Platinum Membership pays $50 pays $0 Organization covered by: Levels Gold Platinum $50 $50 $0 $0 Employee Organization Silver Gold $25 $50 $25 $0 Employee Employee Bronze Silver $12.50 $25 $37.50 $25 Employee Employee Bronze $12.50 $37.50 Employee Everyday Biking Classes All Platinum, Gold and Silver level Corporate Members are provided with one complimentary Everyday Biking on-site Classes Everyday Biking Class, taught by the Washington Area Bicyclist Association. All Platinum, Classes Gold and must Silver have level a minimum Corporate of Members 20 attendees are provided in order to with take one place. complimentary on-site Everyday Biking Class, taught by the Washington Area Bicyclist Marketing Association. Classes Capital must Bikeshare have a minimum to Employees of 20 attendees in order to take place. Internal marketing assistance is provided to all Corporate Members to Marketing inform your Capital employees Bikeshare about the to Employees program. Internal marketing assistance is provided to all Corporate Members Recognition to inform your employees about the program. Corporate Members will be recognized on the Capital Recognition Bikeshare website with a minimum purchase. Corporate Members will be recognized on the Capital Bikeshare website with a minimum purchase. Contact Us godcgo 202.299.2186 Contact Us info@godcgo.com 202.299.2186 info@godcgo.com CapitalBikeshare.com CapitalBikeshare.com CapitalBikeshare.com

TM Corporate Partner Enrollment Form Organization s Name Organization s Address Organization s Main Phone Contact 1 Name Contact 1 Email Contact 1 Phone Membership Type Select membership level. Tax ID Contact 2 Name Contact 2 Email Contact 2 Phone Platinum ($50) Gold ($50) Silver ($25) Bronze ($12.50) QUANTITY TOTAL $ Payment Method Online credit card payment at https://capitalbikeshare.com/store/corporate Credit card: Mastercard Visa Phone number: Exp date: / We prefer to give credit card information over the phone; please contact the following person for credit card details: Name Phone Email Please invoice us for the amount due, we will pay by check. Please invoice us for the amount due, we will wire you funds. Alta Bicycle Share will send us wiring information. Enrollment Method Please send me printed codes and I will distribute them. Please email me a list of electronic codes that I will distribute. { godcgo Event Participation Request Information Form. } Contact Name: Phone Number: E-mail Address: Organization Hosting Event: Event Name: Event Description: Organization or Event Website: Event Date: Event Time: Set-Up Time: Event Address: Parking Provided for Volunteers? No Yes (Details: ) Indoors Outside: Held rain or shine Yes No Rain date: Estimated Attendance: Please list what material will be provided (for example, table, tent, and chairs): Please list any special requests for this event: M Office use only: Account Rep Date Arlington DC Alexandria Montgomery Split {Please complete this form and return by email or fax to: godcgo Employer Services info@godcgo.com phone: 202-299-2186 fax: 703-247-9288 Please attach any event promotion flyers, posters, emails, etc. 1-877-430-BIKE (2453) CapitalBikeshare.com Contact godcgo at (202) 299.2186 or info@godcgo.com for more information godcgo.com

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