Mobility Strategy - Market Practices

U.S. Domestic - Commuter

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1 © 2022 Graebel Companies, Inc. All Rights Reserved. This document contains CONFIDENTIAL information. Reproduction and distribution of this document in any manner or for any purpose is prohibited without the express written permission of Graebel Companies, Inc. U.S. Domestic Commuter Assignment – Market Practices Provision Market Practices Definition > A commuting scenario involves an employee traveling from their primary residence in one location to their primary workplace in another location on a weekly basis > The distance between the primary resident and the primary work location is far enough to make daily commuting impractical > The commuting scenario is expected to last for an indefinite time frame. Eligibility > Eligibility is defined by each company, but most often commuting arrangements apply to employees in good standing and can include new hires or current employees Per Diem > A one-time cash payment may be made to help offset maintaining homes in two locations. > Some companies opt for a per diem allowance; however, the per diem should only be paid for days the employee is physically in the primary work location. > Considerations should be given to commuters who live in housing with kitchens – per diem may be reduced or eliminated. Housing > Most often Company-selected furnished housing is provided; in cases where unfurnished housing is provided, furnishings are typically rented. Travel > Round trip, coach class airfare (unless company travel rules vary by level) to and from work location weekly (plane or train) > Employees choosing to drive are reimbursed the standard IRS mileage rate but not reimbursed for any expenses (meals or lodging) en route. > Rental car or public transportation stipend in the host location (depending on location) if the employee does not drive their own car. Tax > Important to include policy language clarifying state-to-state tax implications. > There is a common misconception that commuter expenses are not taxable if the commuting arrangement last less than one year. In reality, commuting expenses are all taxable, as a commuter assignment does not involve the employee working away from home. > Most companies will gross-up taxable expenses > Note: Client tax input is critical to review taxability of long-distance commuter benefits as approaches vary by client Repayment Agreement > Typically follows normal Mobility program requirements.

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