New York City employers covered by the new Commuter Benefits Law (No. 53) must offer pre-tax transportation benefits to employees starting January 1, 2016. The local law was passed by the city council on October 7, 2014 and approved by Mayor de Blasio on October 20, 2014. Employers must review the Act to understand their obligations and take the necessary actions.
Employers with 20 or more full-time employees in the City must offer their employees the opportunity to use pre-tax earnings to purchase qualified transportation fringe benefits. Full time employees is defined as “employees who work an average of 30 hours or more per week for such employer for such period of time as the commissioner establishes by rule.” The goal is for employers to reduce payroll taxes and for employees to lower their monthly expenses. As stated in the law, employers whose employees are covered by a collective bargaining agreement are exempt, unless the employer has 20 or more full-time employees who are not covered by the collective bargaining agreement. The United States government, the state of New York, the city of New York or any local government, and employers not required to pay federal, state, and City payroll taxes are also exempt under the law.
For more information, make sure to visit New York City’s website.