For startups and small businesses growing bigger and more successful every year, celebrating your tenth or twentieth employee should be a milestone moment and occasion to celebrate. It should also be a reminder that if you are in a city that has a Commuter Benefits Ordinance in place, you should begin taking steps toward implementing a commuter benefits program for your employees.
Why Make Commuter Benefits the Law
Since 1984, Section 132(f) of the Internal Revenue Code has allowed commuters to pay for a portion of their commute tax-free. However, to take advantage of this opportunity, their employers need to offer a qualified commuter benefits program that ensures compliance and ease of use of tax-free dollars toward commuting. Recognizing the potential savings for employees and employers, and the positive environmental impact commuter benefits have when offered, city governments adopted laws to ensure employees have access to commuter benefits. The San Francisco Bay Area was the first to do so in 2009.
Cities Currently Enforcing the Ordinance
Currently, if you are a business operating in the San Francisco Bay Area with 50 or more employees, Berkeley or the City of Richmond in California with 10 or more employees; or Washington D.C. or New York City with 20 or more employees we can make sure you are fully compliant with the specifics of your market’s Commuter Benefits Ordinance.
Choosing the Right Commuter Benefits Program
Today, with federal limits on tax-free dollars toward commuting at their highest levels, employees can save up to 40% on their commuting costs and businesses, up to 7.65% as a result of reduced payroll taxes.
With the right platform, customized for the specific needs of your employees and for your area’s commuting options, you can maximize participation and increase the savings in dollars and environmental impact. You’ll also experience increased payroll tax-savings for your business, increased employee loyalty, and remain competitive in your recruitment efforts so you can continue to grow.
Learn more about the efforts to encourage local governments to pass transit benefit ordinances here or contact us, to find out how we can help.