What Every Seattle Business Should Know About the New Commuter Benefits Mandate
October 11, 2018
Earlier this week, the Seattle City Council approved legislation to make offering Commuter Benefits mandatory for most companies in Seattle. If you’re a business in the city, here are the highlights to know about the new mandate.
What Seattle-Area Employers Should Know
- Businesses with 20 or more employees will be required to offer these pre-tax benefits to their workers, which can be used toward work-related commuting costs.
- Businesses will be allowed to let employees set aside up to the monthly IRS contribution limit for this benefit. For example, the 2018 IRS contribution limit for mass transit or parking benefits is $260 per month.
- Businesses required to participate will need to make a Commuter Benefits plan an option for employees by 2020.
- Businesses can also give subsidized passes to employees, which will meet the city mandate.
- Businesses that fall under the nonprofit or government sector will be exempt.
- The Seattle Office of Labor Standards will enforce the mandate.
How Commuter Benefits Will Benefit You
In addition to helping your employees save up to 40 percent on their work commute, a Commuter Benefits program can help your company save, too. That’s because funds are taken out of employees’ paychecks pre-tax, so you pay less on payroll taxes. And beyond these savings, offering this benefit is a great way to attract and retain talent while impacting your bottom line. (Check out this blog post to learn more on that topic.)
If you’re interested in more information about Commuter Benefits or how Discovery Benefits can help, reach out to us. We offer a fully compliant, easy-to-use solution that will save you time and money.