MMACH 5

Thank you. I'm going to start working on TPTB next week.

HandsomeRyan

You're welcome. I'm just glad some people are getting use out of it.

mattotoole

Absolutely. A lot of employers would gladly pay you $20/month to not use a parking space too.

mattotoole

Unfortunately those links do expire. I tried linking to them myself.

I put the simplest explanation I could come up with in the yellow box on this page:

https://www.vabike.org/bike-commuter-tax-benefit-passes-both-house-senate/

I put the text of the legislation there too.

famelec

...for the purchase of a bicycle and bicycle improvements, repair, and storage...

Since the legislation includes the actual purchase of a bicycle, it appears that you could purchase a $500 bicycle in January 2009 and get $20 a month reimbursement during the year. Not bad if you really need a new bike.

For those of us who bike commute already and don't need new bike stuff, the benefits are a bit less beneficial. I could get reimbursed for a couple of tires and tubes, maybe a new light, but I expect most of my expenses will be for winter clothing and such which don't appear to be covered.

While the benefits are small, I think it's a good start!

Brian

riddei

It's my understanding that you would get this benefit for commuting by bike regularly. If you ride your bike to work, you get the benefit (if your employer participates). $20 per month compensation. I don't believe you need to buy things and then submit receipts.

dscheidt

No, you'll have to substantiate your bike commuting related expenses. How you have to do that depends on how your employer (or their benefits administrator) runs the program. I'd think the IRS will write rules that allow you to buy a bike and then get reimbursed for it over the course of the year, but it's not inconceivable that they won't.

MMACH 5

I'm sure we will gain some clarity on this, as it starts getting implemented. But here is a scenario for those who might already be familiar with tax deductible employee benefits.

Let's say I need to get a new part for my bicycle that exceeds $20, (for the sake of argument, I'll put the cost at $80).

Do I submit the receipt, ONCE, for $20 to my employer and be done with it?

OR

Do I re-submit the receipt for four months until I have recouped the $80?

Just curious about how this will play out in a real-world situation.
Thanks.

riddei

Although I am not a benefits administrator, I do work for HR. If an employer already has a "commuting benefit" for motorists, such as paying for their parking, they may now extend a similar benefit to bicyclists; such as providing and maintaining bike lockers (or even a rack), showers, locker-room, etc. It is the cost of doing business to allow staff to get to work. Employees who get this benefit for cars do not need to supply any receipts to get reimbursement for a parking space.

dscheidt

No, it's a section 132(f) benefit. That means the employee has to be reimbursed for an actual expense, and the employer has to make sure that it's a bona fide expense. You can only get the the parking benefit if you actually pay for parking.

riddei

In that case, perhaps it can be administered like a flex spending account debit card FSA Debit Card. An employer can place $20per month into your account, and you could use that card as you would a debit card at a bike shop.

Like others said, I guess more will be known when time goes on.

ken cummings

In these days of At-Will hiring (and firing) I am not inclined to put HR through the hassle of running the program. It might just be easier for HR to dump you out on the sidewalk and replace you then to administer the $20/mo program. I am the only one who ever rides to work at my job site. If the most senior person ever started to ride to work the program might work. Until then . . .

MMACH 5

Is the program not completely optional? Simply asking whether your employer will participate will get you fired? That's some serious job instability/insecurity.

famelec

I think it will be easy to convince companies that are or want to be perceived as "green". Or those that have "wellness" programs. For all other companies that don't really care about this stuff, the administration of this is an extra hassle and may not be worth the effort to offer it.

I can't imagine anyone getting fired for asking about it, though.

Brian

riddei

Hey, you've just invented a new protected class... minority, over-40, disabled, sexual orientation, bike commuter.

MMACH 5

My employer is a marketing agency and we produce a lot of printed items. In just the last few months, the production team has been pushing our "green" initiative, (basically using recycled papers and eco-friendly inks). Anyway, the VP from that department is heading it all up and trying to get the whole company on board. I think I can enlist him to help get this rolling.

nemo

Dude you use $20 a month in tubes and tires?? you are putting in some serious miles man. Seriously I am getting a little of the intended "feel good" vibes over this, however really this was debated to death on here long ago and most said what i say, the recognition is nice, however if you really seriously cycle commute, you already enjoy a very large tax break in the form of the sales taxes you don't pay on fuel, car related purchases, and in many cases automobile registration and useage taxes. Will I ask my emploresr for it? No i do not need the break and i work for a non profit ministry which gies me many perks because i ride already. A large secure climate controlled indoor parking area, showers and access to clothing should i require it, covering the occasional I forgot ----- this am, the ability to use company vehicles when needed for emergency runs home and so on. To me this far outweighs the $20 I could get per month!

unterhausen

If HR in anyone's company has this kind of power, it's probably a good time to move on to a different job. Sure, HR can keep you from getting a job, nobody trusts them enough to let them terminate someone.

Sixty Fiver

By request I will stick this up for a little while...

SF

Rollfast

I think that's cool enough, now when do I find a job and one that makes my SSI/Disability MOOT

Come to think of it, living and staying in a house seems to be my job...I'll ask the landlord!

Mendel

From where does the employer get the funds to pay for there program? Off their taxes or off the employee taxes that are withheld?

This is important to me 'cause I work for a public university. Since they are not for profit, I'm assuming that if this is coming from writing off their taxes - there will not be any benefit for me.

umd

It's off their taxes.

evblazer

Here is a link to the company that administers my companies commuter benefit
https://www.myshps.com/commuter/overview.stm
If gives a brief example of how much one would safe if they used the current commuter benefit which people keep saying this is identical to yet also say you get $20 which is where my confusion comes from. If it is like the current commuter benefit if you plug in the $240s for the bike commuting credit on their example $40k worker you'll end up saving $57 a year using pre-tax instead of post tax money.

What they did when I was in NYC was take$50 out of my paycheck for the first two pay periods in a month and put it into an account just like a medical flexible spending account. Then I could buy rail tickets through the website or or send in receipts to get reimbursed for purchases. It was limited to monthly charge though. At the time I could only use $100 of pretax money per a month towards my $300+ rail ticket and no more so I'm not sure how it would work for say the new set of wheels I bought. The wheels are good for more then just a month unlike the train ticket or parking passes so hopefully they would allow you use some saved up pre-tax money for a bulk purchase and not have to spend $20 a month on a layaway program to get stuff.

Since my company already deals with a vendor to do this once the vendor goes online I think I'll actually have that option. I know the vendor administrator in my company so once the bill passes I may ask about it in passing but that would be it I don't want to push anything in this layoff happy company.

Tude 

On my campus - there are several bicyclists in the faculty/staff (and our student commuters are growing too) - a few that are die-hard commuters like me and the rest go on tour. Our Dean has already forwarded the information to the Director of Human Resources ... so we shall see.

HardyWeinberg

Does your employer pay taxes? That's what this all does, right, offsets employer's taxes?