Philly Commuter Benefit

Effective December 31, 2022

 Philadelphia Mayor Jim Kenney has recently signed into law the Employee Commuter Transit Benefit Ordinance. The ordinance goes into effect on December 31, 2022. Employers in Philadelphia with 50 or more employees must provide a commuter transit benefit program to covered employees.

Who is Covered?

A covered employer is defined as an individual, co-partnership, association, corporation, or other entity that employs 50 or more covered employees for compensation (excluding government employers).

A covered employee is any person who performed an average of at least 30 hours of work per week, for compensation, within the geographic boundaries of Philadelphia for the same employer within the previous
12 months.

Per the ordinance, every covered employer must make available for all covered employees at least one of the following:

·      Election of a pre-tax, payroll deduction for Mass Transit Expense or a qualified bicycle expense at
benefit levels at least equal to the maximum amount that may be deducted for such programs ($280 per month indexed by IRS for 2022) (*Note: for tax years 2018-2025 under the 2017 Tax Cuts and Jobs Act, the qualified bicycle commuting reimbursement was suspended); or

·      An employer-paid benefit whereby the employer supplies a Fare Instrument (e.g. pass, token, fare card); or

·      Any combination of theabove

The required commuter transit benefit must be provided to covered employees no later than December 31, 2022.

Read the full ordinance here: http://phlcouncil.com/wp-content/uploads/2022/04/CM-Gym-4.21-Commuter-Benefits-Ordinance.pdf

Have questions about your obligations as an employer? Contact Inspire Culture First today at www.inspireculturefirst.com or 215-788-5024