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NYC Commuter Benefits
As most of you are aware, “for-profit and nonprofit employers with 20 or more full-time non-union employees in New York City must offer their full-time employees the opportunity to use pre-tax income to pay for their commute. Under federal tax law, employees can currently use up to $255 a month of their pre-tax income to pay for qualified transportation. As fuel costs continue to be high, employees are looking for ways to save on their commutes to work. Transportation Reimbursement Accounts are a valuable employee benefit as they help employees save time and money when they use public transit for their commute to work. Plus, they help save the environment.” (Exactly as stated on the DCA website)
Qualified Transportation accounts (QTAs) allow employees to set aside pre-tax funds used for eligible transit and parking expenses related to commuting to work, governed by IRC Section 132.
Employees may elect to contribute to a Transportation Expense Reimbursement Plan (TERP), to reimburse themselves for eligible transportation expenses; the cost of transit passes, the cost of the commuter highway vehicle and the cost of qualified parking expenses.
If they choose to participate in both a parking account and a transit account, each account is entirely separate, and funds cannot be transferred from one to the other. Transit and/or parking benefits are limited to employee expenses only.
When is this benefit mandatory?
If you are receiving this memo, then your worksite is either meeting or are very close to the threshold of 20 or more full-time employees and you are or will be required to offer this benefit in the very near future.
Open enrollment for the program will start on 6/30/3016 and run through 7/31/2016. New hires will be able to enroll within the first 30 days of their employment.
To participate in the Transportation Expense Reimbursement Plan; employees should log into the TBM employee benefit and compliance portal.
If they have not previously registered on TBM’s employee benefit and compliance portal yet, employees should choose the option to register as a new user.
Employees who have an email on file with TBM will receive an open enrollment notice from the system with these instructions. For those who do not, please provide them with the attached employee memo to advise them of the availability of the benefit. It will instruct them on how to go to the benefits site and enroll in the program.