New Year, New Required Transit Perk for NYC EmployeesNovember 5, 2015
New York City’s Affordable Transit Act (Local Law 53) (the “Act”) will take effect on January 1, 2016. The Act requires employers in New York City with 20 or more full-time employees to provide pre-tax transit benefits to their full-time employees.
Federal law allows, but does not require, employers to offer employees the opportunity to apply pre-tax income toward the purchase of qualified transportation fringe benefits (such as MetroCards and commuter train tickets). The current monthly limit is $130 for the cost of transportation between home and work. When the Act becomes effective on January 1, 2016, covered New York City employers will be required to offer an employer program to allow full-time employees to apply pre-tax income toward the purchase of qualified transportation fringe benefits up to the limits established by federal law. Parking expenses are not covered by the Act. The Act will be enforced by the New York City Department of Consumer Affairs (the “DCA”).To continue reading our Alert on this topic, please click here.