Chicagoland gets Qualified Transportation

Chicagoland gets Qualified Transportation

Beginning January 1, 2024, the Transportation Benefits Program Act requires employers employing 50 or more covered employees in certain geographic areas, described below, to offer a pre-tax transit benefit. A pre-tax transit benefit is offered by an employer through a qualified transportation program and paid by an employee through salary-reduction.

Employers must provide a commuter benefit to covered employees to purchase transit passes (e.g., bus passes, train passes) through pre-tax payroll deductions. The cost for such purchase may be excluded from the employee's taxable wages and compensation up to the maximum amount permitted by federal tax law, $300 for 2023.The 2024 indexed amount is likely to be issued very soon.

Covered employee means any person who performs an average of at least 35 hours of work per week for compensation on a full-time basis. This benefit must be offered to all employees starting on the employees' first full pay period after 120 days of employment.

An employer may comply with this requirement by participating in a program offered by the Chicago Transit Authority or the Regional Transportation Authority. The Regional Transportation Authority shall make available a searchable map of addresses that are located within one mile of a fixed-route transit service.

Geographic regions impacted by the law are:

Cook County, Warren Township in Lake County, Grant Township in Lake County, Frankfort Township in Will County, Wheatland Township in Will County, Addison Township, Bloomingdale Township, York Township, Milton Township, Winfield Township, Downers Grove Township, Lisle Township, Naperville Township, Dundee Township, Elgin Township, St. Charles Township, Geneva Township, Batavia Township, Aurora Township, Zion Township, Benton Township, Waukegan Township, Avon Township, Libertyville Township, Shields Township, Vernon Township, West Deerfield Township, Deerfield Township, McHenry Township, Nunda Township, Algonquin Township, DuPage Township, Homer Township, Lockport Township, Plainfield Township, New Lenox Township, Joliet Township, and Troy Township.


The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

Chicagoland gets Qualified Transportation https://www.cbiz.com/Portals/0/Images/Qualified Transportation.jpg?ver=o4ntswQ6V7GMqkC06LEjzQ%3d%3dBeginning January 1, 2024, the Transportation Benefits Program Act requires employers employing 50 or more covered employees in certain geographic areas, described below, to offer a pre-tax transit benefit. 2023-10-02T19:00:00-05:00Beginning January 1, 2024, the Transportation Benefits Program Act requires employers employing 50 or more covered employees in certain geographic areas, described below, to offer a pre-tax transit benefit. Regulatory, Compliance, & LegislativeEmployee Benefits ComplianceNo