The program is a hit with some employers for several reasons, not the least of which is reduced taxes for both employees and employers. The program also appeals to some employers because certain aspects are simpler to manage than other benefits. Employers are not required to have formal written plan documents, although many do use written plans to communicate the program s provisions effectively to employees. Also, nondiscrimination rules do not apply, which simplifies administration. She says the program is very useful for employers in urban areas with developed mass transportation systems, although it does not offer much to an employer in an industrial park, for example.
Employers can structure the benefit in several ways.
Some smaller, high-tech firms provide the benefit as direct compensation, with the employer getting the tax benefits. Our goal is to keep it free, says Kirsten DeChiappari, human resources manager, even as the firm grows to an anticipated 100 employees in the months ahead. It has been very, very well received, she says, and is one tool among many to attract high-quality employees. The pass really excites people because it is something tangible they can use right away. It helps with our recruiting big- time, says Elisa Ulrich, HR generalist, because it enables the firm to draw on a larger pool of employees.