New York City Transit Benefits – Jan. 1, 2016

12/08/2014

Effective January 1, 2016, New York City employers with 20 or more full-time employees (those who work at least 30 hrs/wk) are required offer pre-tax transit benefits.  Companies will have a six month grace period and then a penalty will be imposed if not in compliance within 90 days after a violation is found.  The first violation will cost between $100-$250 and any violation after will be $250 every 30 days until compliant.  Currently under a transit benefits program, employees can set aside $130 pre-tax each month.  Employers should ensure that they have a transit benefit in place by 2016 to conform with the new requirements.

To view the legislation: http://legistar.council.nyc.gov/LegislationDetail.aspx?ID=1739313&GUID=5CAAD882-03E1-4420-9F73-3E2C8F878BBD&Options=ID%7cText%7c&Search=transit