NYC Commuter Benefits Law
Does your employer offer pre-tax transit benefits?
In October 2014, the New York City Council passed Local Law 53 of 2014, otherwise known as the Commuter Benefits Law or the Affordable Transit Act, requiring employers with 20 or more full time employees to offer certain pre-tax mass transit benefits to their employees. The law is expected to reduce transportation costs for employees, promote a cleaner environment by increasing the use of mass transit, and lower payroll taxes for employers. With this new local law, it is estimated that an additional 450,000 employees working in NYC will have the opportunity to save up to $1,200 a year on their transit expenses!
Transit benefit programs allow employees to pay for their transit expenses with pre-tax dollars, avoiding Federal, NYS, NYC and FICA payroll taxes on the amount they deduct for transit, up to $255 per month. With pre-tax transit benefits, employees can save up to 40% of their transit expenses, while also saving employers money by reducing their payroll taxes.
Does your employer comply?
Compliance with the new law is easy, but time is running out. With a full range of solutions, a pre-tax transit benefit administrator can help you and your employer save money and avoid penalties for not complying — easily and quickly.
Good for you. Good for the environment.
Since the TRANSIT SOLUTIONS program began, the following employers on Long Island are just a few of the companies that have implemented the pre-tax commuter benefit program.