The Benefits of Implementing a Bicycle Commuter Program at Your Organization

Friday is National Ride Your Bike to Work Day, the finale of Bike to Work Week, which celebrates those who choose to commute to work on a bicycle. For employees who live relatively close to their workplace, riding a bike to work can be a fun, alternative commuting option. Not to mention, choosing to bike instead of driving or taking public transit can reduce traffic, limit CO2 emissions, and help improve health and well-being by adding an activity to the daily routine.

Employers can encourage employees to get to work by bike, and support those who already do, with a simple solution: a bicycle commuter program. This is a simple reimbursement plan that is easy to design and implement, and it’s completely customizable to meet the needs of each organization. Most importantly, it shows those cyclists among the workforce that you recognize and support their commuting needs, too!

Bicycle commuter programs are typically set up as a type of post-tax lifestyle spending account. Employees use personal funds to pay for qualified bike commuting expenses, then file a claim for a reimbursement with an itemized receipt using their online account or in the mobile app.

Employers cover these qualified cycling costs for employees who choose to bike to work, and those reimbursements are added to their taxable income. Once the program is set up, it’s easy to manage. Employees who enroll can manage their account, check eligible bike commuter expenses, and submit claims anytime through the online portal.

Psst…keep in mind, this is a little different from a traditional commuter or parking benefits program, which allows employees to set aside money before taxes to pay for commuting or parking costs. You can learn more about those programs here.

Another bonus is that a bicycle commuter program can operate on a rolling basis, meaning you can set it up whenever and employees can enroll anytime—no need to wait for the open enrollment period to sign up!

Employers can design the bike commuter program according to their specifications and preference. You set the annual spending limit for your plan and decide what expenses are eligible for reimbursement.

Typical expenses covered include things like:

• The initial bike purchase
• Bike repairs/maintenance
• Essential bike accessories (locks, helmets, lights)
• Bike storage costs

To learn more details about what expenses a bike commuter program typically covers, talk with the plan sponsor or program administrator you are working with for more information. The great thing about setting up this type of spending account is that it is entirely customizable based on the needs of your organization.

If you offer traditional commuter benefits for transit and parking costs, why not extend a similar benefit to the cyclists among your employees? Adding a bike commuter program is a simple job perk that can show employees you care about meeting their needs and support their choice to get to work in a healthy, eco-friendly way. Making bike commutes more affordable can encourage more people to take up cycling to work, enhance the overall well-being of your employees, and help the environment. It’s truly a win-win situation.

Because the bicycle commuter program is a reimbursement model spending account, it’s easy to set it up, and you can offer it on a rolling basis rather than limiting it to open enrollment. That means anyone who takes up biking to work any time of the year can enroll when they want. Employers can customize it to meet the needs of their organization and their employees, and having another voluntary benefit can round out a compensation package to attract and retain top talent.

Have we got your wheels spinning now? Great! We’re here any time to discuss bicycle commuter benefits or any other type of lifestyle spending account you might be interested in adding to your benefits package.