1. How to comply with the SF Transit Benefit Ordinance

2. Goal of workshop Attendees will leave the workshop with a clear understanding of how IRS Section 132(f) works, how to comply with the transit benefit ordinance; and have an understanding of the options available to administer their program. Overview Overview of the Ordinance Understanding the IRS Section 132(f) Code Overview of the options available New bicycle benefit TransLink/EZRider

3. “Only in San Francisco” SF Leads the Way Paid Sick Leave (All employers) Health Care Security Ordinance (20+ employees) Trend: From SF to State

4. SF Transit Benefits Ordinance August 8, 2008: SF Board of Supervisors passed Ordinance No. 199-08 Mandate has strong support in SF business community: SF Chamber; BOMA SF, etc. Designed to help SF achieve its goal to reduce CO2 emissions within the City and County to 20% below 1990 levels by the year 2012

5. Ordinance requires employers with at least 20 employees to offer at least one of three benefit options. All employees counted (full-time, part-time, temporary) Include employees who work outside County Governmental entities not included SF Transit Benefits Ordinance

6. Six month till compliance (January 19, 2009) Non-compliance –$100 for first violation –$200 for second violation (in same year) –$500 for each additional (in same year)

7. Transit has come a long way in San Francisco…

8. 1991 – Transit benefit begins in the Bay Area ($21 Maximum allowed only as a subsidy) 1998 – Commuter Choice Legislation Passes allows pre-tax deduction 2007 – Benefit increased to $115 2008 – SF Board of Supervisors passes legislation 2009 – Additional increase in cap to $230; $20 bicycle amendment …and so has the transit benefit.

9. Saves up to $190 per employee per year in payroll taxes Creates an excellent employee recruitment and retention tool Improves employee morale and productivity Reduces parking lot congestion with more transit/vanpool usage Helps reduce local traffic congestion and improves air quality Benefits to Employers

10. Saves up to $1000 a year in personal income taxes Creates an incentive to try a more relaxing and economical commute Using transit or vanpools helps to improve air quality and the general quality of life in the Bay Area Benefits to Employees

11. Thousands of employers already participate in the Bay Area…

12. IRS and 132 (f) -- Very Flexible -- 2 Key Points: -Cannot exceed maximum per month of $230 -No cash reimbursement

13. Three ways to offer the transit benefit: A. pre-tax payroll deduction B. subsidy, in addition to salary C. a combination of the two

14. Two ways to set up your transit benefit: A.Do it yourself Less than 100 employees You have one work site B. Have someone else do it for you--using a third party administrator (TPA) Larger companies Multiple work sites

15. Option #1: Do it Yourself… 9 steps to setting up your program

16. #1 Choose the type of program Debit Cards - IRS compliance Transit Passes - Available from all transit agencies Vouchers - Universal acceptance

17. #2 Get management approval

18. #3 Identify key personnel

19. #4 Create and distribute survey/enrollment form

20. #5 Tabulate surveys

21. #6 Arrange for payroll to establish a deduction code

22. #7 Order passes/vouchers/debit cards

23. #8 Distribute benefit to employees

24. #9 Update your personnel policy handbook

25. Option #2: Have someone else do it for you Selecting a Third Party Administrator

26. #1 Research options The Department of the Environment has a list of vendors #2 Meet with a representative Make sure to understand costs, timeframes, and your responsibilities #3 Sign agreement

27. The benefit can be used for all transit and vanpools in the greater Bay Area including….

28. Also consider including bicycling—it is now covered up to $20 a month!

29. Also works with Translink!

30. “The mode of transportation that you choose has a greater effect on the environment than any other decision you make as a consumer.” -Union of Concerned Scientists