Mayor Bill de Blasio this week signed into law a bill which requires city companies with 20 or more full-time employees to offer pre-tax transit benefits. Intro 295-Aencourages employers to take advantage of an existing federal tax benefit, which already allows businesses to offer its workers $130 a month as pre-tax income for transportation.
The legislation is expected to save employees opting into the program an average of over $400 a year on their Metro Card expenses. Once companies start offering this benefit, according to the Office of the Mayor, employers can save more than $100 per year per employee in tax liability. Reports also indicate that this law will extend transit benefits to more than 450,000 city residents who are not currently offered them, in addition to retaining approximately $85 million in the city’s economy.
“This is a win-win for local businesses and working New Yorkers alike—especially at a time when affordability remains one of the most pressing challenges facing our city,” de Blasio said on Monday. “From saving employers money to making public transportation a more affordable option for straphangers, this bill will help New Yorkers get by a little easier.”
The law, which will be enforced by the Department of Consumer Affairs, takes effect in January 2016. Companies that do not comply will be subject to a civil penalty, but employers will have 90 days to fix a violation before it is imposed. To allow businesses adequate time to adjust to the new law, employers will not be subject to penalties that take place before July 1, 2016.
By Forum Staff
