Benefits & Healthcare Update: New York City Ordinance Requires Employers to Offer Pre-Tax Transit Benefits
9 November 2015
Effective January 1, 2016, New York City Local Law 53 will require all employers with more than 20 full-time employees to offer all full-time workers the opportunity to use pre-tax earnings to purchase qualified transportation fringe benefits under Section 132(f) of the Internal Revenue Code.
Although the law is effective January 1, 2016, employers will not be subject to any penalties for violating the law until July 1, 2016. After that date, any employer that has violated the law will have 90 days to cure their first violation. Once the 90 days expire, an employer will be subject to a civil penalty of up to $250 for every month that they do not offer the benefit.
Cammack Health recommends you contact your payroll professionals before making any adjustments to your practices.
If you have any questions regarding qualified transportation benefits, please contact Ed Doherty at 646-839-8251 or via email at EDoherty@cammackhealth.com.