WATERTOWN, MASS. — Three years ago, the city and county of San Francisco passed groundbreaking legislation that mandates companies with 20 or more employees to offer transit benefits to their employees. The most striking aspect of this mandate was that it had the support of the business community. Business groups like the San Francisco Chamber of Commerce, the Golden Gate Restaurant Association, and the Building Owners and Managers Association (BOMA) saw the inherent benefit for their members to participate in a program that saves payroll taxes, income tax for their employees, reduces traffic congestion, and lessens air pollution.
Now New York state is considering similar legislation for employers with 50 or more employees to establish a qualified transportation fringe benefit program consistent with section 132 of the internal revenue code (IRS). According to the content of the bill, they believe that by “requiring large employers to offer this program, this bill will encourage the use of mass transit. For those employees who already commute to work using mass transit, it will offer significant tax savings. Participating employers will also reduce their tax burden.”
With the bill passed by the State Assembly, it is now up to the hands of the Senate. The bill has been put on the calendar for a floor vote #767. However, even though it is on the calendar, there is no guarantee that it will pass through the Senate.
For more information, visit www.commutercheck.com.