If you are interested in saving money on your commute, you’ve probably wondered, “Is my company required to offer commuter benefits?”
The answer depends on where you live.
While there is a federal tax code law that allows companies to reimburse commuters on commuting costs (and the company saves on payroll taxes), there’s no national law that says your company must offer commuter benefits.
At the same time, there are no restrictions either. If your employer is willing to offer pre-tax commuter benefits, then you and your colleagues can get them for your job. If you want us to contact your employer for you, we will.
What are Commuter Benefits
Commuter benefits allow employees to set aside tax-free money in their paychecks to pay for their commuting expenses. Commuter benefits apply to mass transit, rideshares and qualified paid parking.
If you live in one of the following municipalities or geographic areas, your employer is required to offer transit benefits under the following conditions:
- Seattle
Businesses with 20 or more employees will be required to provide commuter benefits starting Jan. 1, 2020 to employees who work 10 hours per week.
- New York City
Businesses with 20 or more full-time employees are required to offer commuter benefits.
- Washington, DC
Businesses with 20 or more employees are required to offer commuter benefits.
- San Francisco Bay area local ordinances
The Bay area has a strong showing of support for commuter benefits. The city of San Francisco, Berkeley, and Richmond all have commuter benefits ordinances.
- San Francisco Bay regional laws
The San Francisco area also has commuter benefits laws outside of municipalities. The nine-county Bay Area Quality Management District has a law that covers each county in the district.The San Francisco Airport also has its commuter benefits regulations that mandate tenants who have 20 employees working per work be eligible for commuter benefits.
- New Jersey
New Jersey is poised to become the first state to pass a commuter benefits law. Work is also underway in Los Angeles to get a law on the books. There are also grassroots efforts in many cities across the country for commuter benefits laws so that you can expect more mandated programs in the coming years.
How much can you save with commuter benefits?
Are you interested in seeing how much money commuter benefits can save you as a commuter, or you as a business owner?
We have commuter benefits cost-savings calculators on our website at: edenredbenefits.com/foremployees/
