OPTION C: Combination of employee pre-tax salary deduction and employer-provided benefit
This combination or "share the fare" option allows for an employer contribution and enables employees, if they wish, to add-into the program from their own salary.

	1.	Tell your employees about Commuter Check and decide how much the company will offer tax-free to each employee. Then, allow them to choose how much of the difference, up to the maximum $110 per month/$1320 per year, they would like to deduct from their salary. The employee share can also be treated as a required co-payment if desired. A start-up announcement can explain the program to employees obtain their authorization for salary deductions. We also have additional information for employees considering signing up.
	2.	Tabulate quantities and denominations. Determine the number of Commuter Checks for each denomination you want; the sample order summary chart may also assist you. Or visit the Participating Cities page, for a complete list of available denominations by city.
	3.	Establish a payroll deduction code for Commuter Checks and arrange for payroll deduction processing. No special record keeping or reporting is required; you only need to satisfy your internal needs. The employee-paid amounts can appear on employee pay stubs and on annual W-2 forms in Box 14 as non-taxable compensation. If you use an outside payroll provider, click here for Payroll System Interface guidance.
	4.	Order the Commuter Checks. Use the enrollment form to place your first Commuter Check order. Submit the form with advance payment. To make re-ordering easy, timely reminders are sent based on a quarterly, semi-annual or annual schedule; see enrollment form for details. You can even view an example of a Commuter Check order summary chart.
	5.	Distribute Commuter Checks to employees. Commuter Checks can be distributed to employees at an established location; via hand delivery by an assigned staff person; or mailed directly to their homes. Just as you would not leave paychecks in open mailboxes, it is best to distribute Commuter Checks in a way that ensures employees receive them. You may wish (but are not required) to have employees sign for the receipt of their Commuter Checks, by using an employee receipt form.
	6.	Let employees know how to participate in the program. Include a description of the program in your personnel policy handbook and on appropriate bulletin boards. You can also put up posters to promote the program to new employees, or give employees an introductory memo. Be sure to include:
		• The contact person at your company   • A listing of available Commuter Check denominations   • How new employees can participate in the program   • How to change the amount employees receive   • How and where employees can redeem Commuter Checks   • Local information and customer service phone numbers at participating transit agencies.
	7.	Redeeming Commuter Checks. The easiest part of the program is that once employees receive their Commuter Checks, they purchase their own transit passes and tickets. You avoid handling any fare media! In your first shipment will be employee flyers that outline how to use Commuter Checks. Click for information regarding sample copies of employee flyers.
	8.	Save copies of your Commuter Check order forms/invoice notices. All costs, including processing fees and shipping charges, where applicable, are deductible either as salary, employee benefit, or as an administrative expense. The IRS currently requires no special documentation, record-keeping or substantiation for Commuter Check.