NYC Employers Must Offer Commuter Benefits

Effective January 1, 2016 New York City will require it’s employers to give their employees commuter benefits. 

The new law (NYC Commuter Benefits Law) applies to for-profit as well as nonprofit organizations with 20 or more full-time non-union employees in New York City.

Employers must offer their full-time employees the opportunity to use pre-tax income to pay for their commute.  Full-time employees means anyone who works 30 or more hours per week.

Under federal tax law, employees can currently use up to $255 a month of their pre-tax income to pay for qualified transportation.

This benefit cannot be used for parking.

Benefits must be continued even if the number of employees drops below 20 after it was started.

Failure to comply could mean financial consequences for businesses.  Beginning July 1, 2016 the city will begin issuing violations to businesses that do not comply with the law.  This gives employers a grace period of six(6) months.  Employers will not be subject to penalties for violations that take place before July 1.  The law also gives employers 90 days to cure (correct) a violation before penalties are imposed.  A civil fee of $250 will be imposed for every violation.

Sources:
NYC Commuter Benefits Website
NYC Commuter Benefits Law

By Wendy Stewart