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what are commuter benefits nyc

by Prof. Sandra Bergnaum Published 2 years ago Updated 1 year ago
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A commuter benefits program is a program that certain employers can offer under the provisions of Internal Revenue Code Section 132(f) to their full-time employees to use pre-tax income to cover certain transportation costs.

What can I use commuter benefits for?

Which eligible expenses can be covered by commuter benefits?Parking. Meters. Garages. Lots.Ridesharing. Lyft Shared. Uber Pool. Via.Bike maintenance and repairs.

Are commuter benefits required in NY?

Under NYC's Commuter Benefits Law, most private and nonprofit employers with 20 or more full-time non-union employees in NYC must offer a commuter benefits program. Employees can lower their monthly expenses by using pre-tax income to pay for transit expenses.

Can I use NYC commuter benefits for Uber?

Any Uber rider in New York City is eligible to use pre-tax dollars on uberPOOL if their employer provides a commuter program. All you have to do is add your commuter benefits card as a payment method on your Uber account before you ride, and make sure to select it when you are requesting during your commute.

Are transit benefits use it or lose it?

The pre-tax transit or vanpool benefit is not a "use it or lose it" benefit. It is intended to be deducted and used each month. However, since employers capture the payroll deductions upfront, the employee uses the deductions on a rolling basis.

Can commuter benefits be refunded?

Per IRS regulations, your employer can't refund your unused commuter benefits funds back to you. However, you can submit claims for eligible expenses incurred during employment for up to 90 days.

Can I use commuter benefits for Uber?

Any Uber rider is eligible to use pre-tax dollars on UberX Share if their employer provides a commuter program. All you have to do is add your commuter benefits card as a payment method on your Uber account before you ride, and make sure to select it when you are requesting during your commute.

How does commuter benefits Save Money?

By offering employees a pre-tax commuter benefit program, the cost of commuting deducted for employees reduces the amount of payroll being taxed. This means a savings of up to 7.65% on average, on payroll taxes. The more employees that enroll, the greater the savings.

What is a commuter card?

A Commuter Benefit Card is a prepaid card that is linked to a Commuter Benefit Plan (CBP). The card allows a participant to access plan funds at the point-of-sale to pay for eligible workplace mass transit and/or parking expenses.

How do I cancel my NYC commuter benefit?

To switch your enrollment to a new plan or to cancel your enrollment altogether, you need to log into your agency's payroll portal to make the change here: www.commuterbenefitsnyc.com/signup. Please make sure to include your full name and specify that you are a City of New York employee.

Do commuter funds expire?

Commuter benefits funds do not expire unless you leave your company. These funds will continue to rollover month to month, year to year, as long as you're still at the same company. However, when you leave the company, any unused funds in your account will be returned to the company.

Are commuter benefits taxable?

Under the US federal tax code section 132(f), commuter benefits are a type of fringe benefit that is not taxed as income. Commuter benefits allow employees to pay for commuting expenses with non-taxed dollars. As of 2020, commuters can elect up to $280 monthly to each parking and public transit costs.

Are commuter benefits reported on W-2?

How do I know that my commuter benefit (pre-tax transit) was properly recorded? It is not a deduction, it is an exclusion from income. The result is the same. If you entered the W-2 correctly, it should be excluded as your employer should have already excluded it from taxable wages on your W-2.

When did NYC start offering commuter benefits?

Employers had a six-month grace period after NYC’s Commuter Benefits Law took effect on January 1, 2016 to begin offering commuter benefits to their employees. As of July 1, 2016, DCA is authorized to seek penalties for failure to comply with the law.

How does a commuter benefit work?

A commuter benefits program can provide savings for both employers and employees. Employers can save by reducing their payroll taxes. The more employees who sign up for transportation benefits, the more the employer can save. Employers can also attract and retain employees by offering transportation benefits.

What is DCA in NYC?

The Department of Consumer Affairs (DCA) enforces the law and coordinates the City’s public education and outreach campaign to help employers and employees know their responsibilities and rights when it comes to commuter benefits. THERE’S A BETTER WAY TO WORK with NYC’s Commuter Benefits Law. I. GENERAL QUESTIONS.

How many locations does an employer have in New York?

An employer has two locations in New York City.

How many hours can you work in New York City?

Full-time employees whose job responsibilities require them to work occasionally in New York City are covered by the law if they worked an average of 30 hours or more per week in the most recent four weeks, any portion of which was in New York City, and if their employer has 20 or more full-time employees. Scenario:

Can you use commuter benefits before the workforce is reduced?

An employer must allow the full-time employees who had been eligible to purchase commuter benefits before the workforce was reduced with the continued opportunity to use pre-tax income to purchase qualified transportation fringe benefits for the duration of their employment. [back to top]

What is Temporary Help in New York?

Temporary help firms that employ 20 or more full-time employees who are placed in New York City are required to offer those employees the opportunity to use pre-tax income to purchase qualified transportation fringe benefits, other than parking.

How does NYC's Commuter Benefits Law help employers?

NYC’s Commuter Benefits Law Helps Employers and Employees to Save: Benefits for Employers: Employers can save by reducing their payroll taxes. The more employees who sign up for transportation benefits, the more the employer can save. Employers can also attract and retain employees by offering transportation benefits.

How much can you use for commute in New York?

Under federal tax law and effective January 1, 2020, employees can currently use up to $270 a month of their pre-tax income ...

When did DCA issue commuter benefits?

July 1, 2016 : DCA authorized to issue violations to businesses that do not comply with the law. The law gave employers a six-month grace period—from January 1, 2016 to July 1, 2016 —to begin offering a commuter benefits program. Employers were not subject to penalties for violations that took place before July 1, 2016.

When did the NYC transit law take effect?

NYC’s Commuter Benefits Law took effect on January 1, 2016. DCA enforces the law and coordinates the City’s public education and outreach campaign to help employers and employees know their responsibilities ...

How can employers attract and retain employees?

Employers can also attract and retain employees by offering transportation benefits. Benefits for Employees: Employees can lower their monthly expenses by using pre-tax income to pay for their commute.

How much can you save on commuting in New York City?

Under this scenario, they’ll save $70 a month, or a total of $840 a year. It might not be easy to commute in New York, but at least you have the law on your side.

How long is commute time in NYC?

You have the best and worst of it if you are an NYC commuter. By one measure, you have the worst one-way commute time in the United States: about 34 minutes. However, you’ve had a commuter benefits law on the books since January 2016.

Is there a mandate for federal taxes in the Bay Area?

A number of states allow for federal and state income and payroll taxes, but there is no mandate. The NYC law closely mirrors the IRS fringe benefit guidelines concerning reimbursement.

Does NYC have commuter benefits?

It would make sense that NYC would have a commuter benefits law since there’s an abundance of commuters. The Census Bureau estimated 1.6 million people commute into Manhattan on a workday. It’s estimated the NYC rail systems serve more 150 million commuters annually in the tri-state region.

NYC: Home of the commuter

It would make sense that NYC would have a commuter benefits law since there’s an abundance of commuters. The Census Bureau estimated 1.6 million people commute into Manhattan on a workday.

How much can you save in NYC?

Let say you spend $110 commuting on the subway or bus every month ($5.50 x 20 working days). If you are single and make $78,000 per year, you can save $484. There are other variables involved, but that’s one option. You can see your savings no matter what state you live in by entering your information into our savings calculator.

How Commuter Benefits Work in NYC

You have the best and worst of it if you are an NYC commuter. By one measure, you have the worst one-way commute time in the United States: about 34 minutes.

NYC: Home of the commuter

It would make sense that NYC would have a commuter benefits law since there’s an abundance of commuters. The Census Bureau estimated 1.6 million people commute into Manhattan on a workday. It’s estimated the NYC rail systems serve more 150 million commuters annually in the tri-state region.

How much can you save in NYC?

Let say you spend $110 commuting on the subway or bus every month ($5.50 x 20 working days). If you are single and make $78,000 per year, you can save $484. There are other variables involved, but that’s one option. You can see your savings no matter what state you live in by entering your information into our savings calculator.

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