On December 31, 2022, the Philadelphia Employee Commuter Transit Benefit Program goes into effect. Because of an update to Title 9 of the Philadelphia code, employers who meet the criteria to be considered Covered Employers must provide eligible employees with commuter transit benefits. For businesses operating in Philadelphia, it is essential to pay close attention to the definitions provided in the ordinance and apply them appropriately.
Covered Employers
Private employers in Philadelphia who employ 50 or more covered employees are considered Covered Employers. These employers are required to provide employees with a commuter benefit plan. However, this does not apply to government employers.
Covered Employees
Workers who performed an average of at least 30 hours of compensated work per week in Philadelphia for the same employer in the previous 12 months are considered Covered Employees.
Commuter Transit Benefit
Covered employers are required to offer at least one of the following commuter transit benefit programs to their covered employees:
- Election of a pre-tax payroll deduction for a fare instrument (pass, token, or fare card) or transportation in a commuter highway vehicle ($280 per month indexed for 2022) or a qualified bicycle expense; or
- An employer-paid benefit whereby the employer supplies a pass, token, or fare card for a covered employee’s mass transit expense; or
- Any combination of the two.
Qualified bicycle expenses include reasonable expenses for employees who regularly use a bicycle to commute—including the purchase, maintenance, repair, and storage expenses related to bicycle commuting.
Covered employers who do not comply with the Philadelphia Employee Commuter Transit Benefit Program may be subject to fines.
Learn more about CBIZ’s solution to get in compliance ASAP.