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Published byLeona Murphy Modified over 9 years ago
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How to comply with the ____ Transit Benefit Ordinance [City Seal]
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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 [bicycle benefit ?]
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Transit Benefits Ordinance [Date of passage and number] [Summarize existing support in the business community] Designed to help achieve its goal to reduce CO2 emissions _______________
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Ordinance requires employers with at least __ employees to offer at least one of three benefit options. All employees counted (full-time, part- time, temporary) Include employees who work outside _____. Governmental entities not included. Transit Benefits Ordinance details
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[city] Benefits Ordinance ____ months till compliance (xx x, 20xx) Non-compliance –$xx for first violation –$xx for second violation (in same year) –$xx for each additional (in same year)
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Transit has come a long way…
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1991 – Transit benefit begins ($21 Maximum allowed only as a subsidy) 1998 – Commuter Choice Legislation Passes allows pre-tax deduction 2007 – Benefit increased to $115 2009 – Additional increase in cap to $230; $20 bicycle amendment 20__ -- __________ passes legislation …and so has the transit benefit.
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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
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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 Benefits to Employees
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Hundreds of employers already participate in __… [Add additional logos here]
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IRS and 132 (f) -- Very Flexible -- 2 Key Points: -Cannot exceed maximum per month of $230 -No cash reimbursement
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Three ways to offer the transit benefit: A. pre-tax payroll deduction B. subsidy, in addition to salary C. a combination of the two
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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
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Option #1: Do it Yourself… 9 steps to setting up your program
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#1 Choose the type of program Debit Cards - IRS compliance Transit Passes - Available from all transit agencies Vouchers - Universal acceptance
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#2 Get management approval
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#3 Identify key personnel
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#4 Create and distribute survey/enrollment form
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#5 Tabulate surveys
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#6 Arrange for payroll to establish a deduction code
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#7 Order passes/vouchers/debit cards
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#8 Distribute benefit to employees
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#9 Update your personnel policy handbook
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Option #2: Have someone else do it for you Selecting a Third Party Administrator
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#1 Research options Look online to see who can provide this service; talk with your payroll provider as well #2 Meet with a representative Make sure to understand costs, timeframes, and your responsibilities #3 Sign agreement
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Also consider including bicycling—it is now covered up to $20 a month!
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“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
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