New york pre tax transportation

Among the types of transportation costs which, under Local Law 53, employees may pay with pre-tax income are i transit passes, such as MetroCards, that can be used on public or privately owned mass transit and ii commuter vans with a seating capacity of six or more passengers.

The new Law provides employers with a six-month grace period — from January 1, through June 30, — before the NYCDCA is authorized to seek civil penalties against employers which violate the new Law. After the day period to cure expires, every 30 day period in which the employer fails to offer full-time employees the opportunity to use pre-tax earnings to purchase qualified transportation fringe benefits, other than qualified parking, will constitute a subsequent violation of the new Law.

No single employer will suffer more than one civil penalty under the new Law in any 30 day period. Local Law 53 does not create a private cause of action by an employee against an employer for violating the new Law.

Local Law 53 requires businesses with 20 or more full-time employees in New York City to establish a qualified transportation benefit program. Employers in New York City must determine whether they are subject to the new Law. Employers who are subject to Local Law 53 must determine whether their present employee benefit plans and programs, if any, afford full-time employees the opportunity to use pre-tax earnings to purchase qualified transportation fringe benefits, other than qualified parking, in accordance with federal law.

If your company needs assistance or guidance on a labor or employment law issue and your company is located in the New York City area, call Attorney David S. Rich at Exclude remote workers — Benefits would not need to be provided to full-time employees that work remotely and do not commute to a location or physical worksite in New York City;.

Impose certain recordkeeping requirements demonstrating compliance with the law — Maintain records for two years showing that eligible employees were offered benefits and whether they accepted or decline;. Establish how business size is calculated to determine whether a business is covered under the law — Size would be based on the average number of full-time employees during the most recent three consecutive months; and.

Clarify how the law applies to temporary help firms — The temporary help firm would be deemed the employer and required to comply with the ordinance. Employers will have 90 days to cure a first violation before a civil penalty is imposed. Further, if an employer fails to cure the violation, every 30 days after the cure period expires will be a subsequent violation.

All covered New York City employers must develop measures to ensure compliance with the transportation benefit ordinance. In addition, as transportation benefit plans are not subject to the Employee Retirement Income Security Act of ERISA , unlike many other employer-sponsored employee benefit plans, these plans are subject to a myriad of state and local requirements e. He advises both unionized and union-free clients on a full-range of labor and employee relations matters. With respect to traditional labor matters, Mr.

Greenberg represents clients in collective bargaining negotiations, labor disputes, grievances and arbitrations, proceedings before the National Labor Relations Board, and in state and federal court. Greenberg also advises clients on the legal aspects of remaining union-free Daniel J. He assists both unionized and union-free clients with a full-range of labor and employee relations matters. Jacobs represents clients in collective bargaining negotiations, contingency planning, labor disputes, grievances and arbitrations, proceedings before the National Labor Relations Board, and in state and federal court.

Your browser does not support iFrames. Navigation menu. Print Font. Public Transportation Bureau. In addition to reauthorizing the transit and highway programs through fiscal year , it made several changes to the Internal Revenue Code IRC , including a provision found in Section affecting the transit and vanpool benefits which are considered qualified transportation fringe benefits under 26 USC f.

The employer pays for the benefit and receives an equivalent deduction from his business income taxes. Employees receive the benefit completely free of all payroll and income taxes, in addition to their current compensation.