JACKSONVILLE TRANSPORTATION AUTHORITY. IRS Commuter Tax Benefit Program Mike Miller JTA Business Development Manager
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1 JACKSONVILLE TRANSPORTATION AUTHORITY IRS Commuter Tax Benefit Program Mike Miller JTA Business Development Manager
2 Background Internal Revenue Code Section 132(f) and TEA-21 allows employers to offer employees the opportunity to set aside pre-tax dollars for commuter transit expenses The Qualified Transportation Fringe Benefit limit for transit is $130 per month JTA received an $125,000 FDOT grant for a public awareness campaign promoting the Commuter Tax Benefit Program in Jacksonville FDOT approved JTA developing an employer/employee education and marketing awareness campaign
3 Project Description Develop a transit commuter program for employers and employees to encourage the use of JTA transit when commuting to work JTA would market the program to businesses and their employees Refer businesses to employee benefits partners, Wage Works and EDENRED Commuter Benefit Solutions, who would administer the program
4 The Program JTA entered into non-exclusive M.O.U. s with Wage Works and EDENRED Commuter Benefits Solutions to administer the program with employers Employers may choose either company as their administrator based on the services each company offers No minimum number of employees are required to enroll in the program The employer pays the benefit administrator a nominal monthly fee for each enrolled employee There was no cost to JTA for implementing the program
5 The Program Each month the employer deducts the cost of a JTA 31-day pass from the enrolled employee s paycheck, pre-tax The fare is sent to the benefits partner who issues a transit debit card to the employee with $50 loaded on the card to buy and/or upload a JTA STAR card with a 31-day pass from a JTA TVM or Rosa Parks Transit Station JTA receives the $50 from the benefits company on the debit card to cover the cost of the 31-day pass Potential employers for the program: City of Jacksonville Hyatt Hotel UF Health/Shands Everbank
6 The Benefits Benefits for the Employees and Employer: Employees save Federal Income taxes and FICA contributions on the $50 fare* Employers save 7.65% in payroll taxes on each enrolled employee The financial savings would incentivize employees to use transit to commute to work *Individual savings vary depending on employee income and tax bracket Benefits to JTA: Promotes the tax savings employees and employers can realize by utilizing JTA transit Generates higher ridership Increases the number of choice riders due to tax benefits
7 The Marketing Campaign Bus Shelter ads/interior Cards Brochures News releases encouraging stories about program Newspaper ads JTA employee informational posters and wallet cards Digital billboards Making Moves TV show/website/social media TV commercials
8 Marketing Timeline August 17 Install bus interior cards Contact media for news stories and promotion Install staff informational posters in Ops Bldg Post program info on JTA website Wallet cards distributed to bus operators August 24 Install 20 Shelter ads 80 TV commercials begin airing on WJXT-4
9 Marketing Phase 1 Six Digital billboards displayed Tax Benefit Program ads 12 weeks of ads in the Jacksonville Business Journal began August 14 th Making Moves story aired in the September program Program posted on JTA Facebook page Brochures were distributed at locations featuring JTA bus schedules
10 Marketing Phase 1 MEDIA QUANTITY UNIT COST TOTAL COST Transit interior cards 250 $5 $1,250 Shelter ads 50 $30 $1,500 Brochures 5,000 $0.10 $500 Jacksonville Business Journal 12/3 months $1,205 $14,460 Internal posters/wallet cards 25/500 $75 Digital billboards 4 bulletins+1 bonus/3 mos. $9,00/4 wks. $27,000 Monitors n/a Making Moves 1 story + :30 sec ad/3 mos. n/a TV advertising Ch. 4 News /3 mos. $25,000 Staff time $4,000 Jones-Worley $25,000 Total $98,785
11 Billboard
12 Brochure
13 Brochure
14 Brochure
15 Newspaper Ads
16 Newspaper Ads
17 Bus Shelter Ads
18 Employee Poster
19 Wallet Card
20 Wallet Card Fast Facts
21 Video to Employers
22 Video to Employees
23 Marketing Results TV Spots 4,657,000 viewers Digital Billboards (4 rotating boards) 8,385,504 impressions Jacksonville Business Journal (1/4 page ad) 448,920 readers Bus Shelter Ads (20 panels) 18,602,922 impressions Interior Bus Ads (150 fleet) 4,872,000 impressions On Site Visits 4 corporations
24 Outreach Personal meetings with employers to brief them on the program Presentations to local chapter of SHRM (Society for Human Resource Management) Meet with employees on JTA routes and services
25 Questions
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