LIHU‘E — Hawai‘i Pacific Health has recently implemented a transit commuter benefit program at Wilcox Memorial Hospital and now a number of employees are riding The Kaua‘i Bus for a nominal fee, according to a county news release. The release
LIHU‘E — Hawai‘i Pacific Health has recently implemented a transit commuter benefit program at Wilcox Memorial Hospital and now a number of employees are riding The Kaua‘i Bus for a nominal fee, according to a county news release.
The release said it’s not often that commuting costs can be sheltered from federal taxes for both the employee and employer. However, there is a federal law that allows employers to provide employees up to $115 a month to cover transit or vanpool commuting costs or share these costs with their employees as a tax-free benefit.
George Costa, director of the Office of Economic Development, said he is delighted that HPH has tapped into a program that benefits both Wilcox Memorial Hospital and its employees.
“I think it’s great that HPH is thinking outside the box and has found a way to help themselves and their employees during these tough economic times,” said Costa. “I highly encourage other businesses to check out the transit commuter benefit program.”
“It’s a win-win situation,” said Dee Knudsen, vice-president of human resources for Hawai‘i Pacific Health, when she explained that the $15 for a bus pass is shared between HPH and the employee resulting in cost-savings to both.
HPH contributes $5 per employee towards a monthly bus pass and unlike ordinary wage payments, HPH does not have to pay its share of federal payroll taxes on the transit commuter benefit.
For Wilcox employees, $10 is deducted from their paycheck for the bus pass before taxes so they actually end up paying about $7 a month commuting to and from work.
“Participants in the transit commuter benefit program live all over the island — Anahola, ‘Ele‘ele, Kapa‘a, Kekaha, Lihu‘e and Waimea. Riding The Kaua‘i Bus is a tremendous savings for them compared to driving their car especially for those who live far,” Knudsen said in the release.
She said HPH is also pleased that in addition to saving money, the transit commuter benefit program also helps to ease traffic congestion and reduce the amount of carbon dioxide in the air.
“I’d be happy to discuss our transit commuter benefit program with any local business who’s interested in implementing it,” said Knudsen.
Kaua‘i Chamber of Commerce President Randal Francisco said he’s committed to helping local businesses survive the economic downturn and is pleased to learn of another opportunity for businesses.
“During this challenging economy, anything government can do to help businesses minimize their costs of doing business to survive and eventually thrive will help to keep our economy moving forward,” said Francisco. “Last summer, I took the bus from Lihu‘e to Princeville to experience it myself. I enjoyed the convenience, affordability and camaraderie of the riders. I’m also looking forward to the completion of the new bus stops being built on the Westside of Kaua‘i.”
Janine Rapozo, executive on transportation, said the $15 monthly Kaua‘i Bus pass can be used for other purposes aside from just commuting to and from work.
“It’s for unlimited travel on the bus for an entire month,” said Rapozo, adding that the Transportation Agency is continually looking at ways to enhance the bus system and will be adding two new routes in February.
• For more information about The Kaua‘i Bus, call 241-6410; to contact Knudsen, e-mail dknudsen@wilcoxhealth.org
