Commuter Benefits Law

Information for Employers and Employees

Print


Information for Employers and Employees

NYC’s Commuter Benefits Law takes effect on January 1, 2016. Under the law, covered employers must offer commuter benefits to eligible full-time employees beginning January 1, 2016.

WHAT ARE THE ADVANTAGES OF A COMMUTER BENEFITS PROGRAM?
Advantages for Employers Advantages for Employees
  • Employers save by reducing their payroll taxes. The more employees who sign up for transportation benefits, the more the employer can save.
  • Employers can attract and retain employees by offering transportation benefits.
  • Employees can lower monthly expenses by using pre-tax income to pay for their commute.

WHO IS COVERED BY THE LAW?
Employers Employees
Covered Covered
  • For-profit and nonprofit employers with 20 or more full-time non-union employees* in New York City, including temporary help firms.
  • Full-time* employees of covered employers.
*Under the Commuter Benefits Law, a full-time employee is an employee who works an average of 30 hours or more per week in the most recent four weeks, any portion of which was in New York City.
Not Covered Not Covered
  • United States, New York State, and New York City governments, including any office, department, independent agency, authority, institution, association, society, or other body of the state, including the legislature and the judiciary.
  • Employers not required to pay federal, state, and City payroll taxes.
  • Employees who work less than an average of 30 hours per week in a four-week period.
  • Full-time employees who are New York City residents but work outside of New York City.
  • Full-time employees who are covered by a collective bargaining agreement.
  • Independent contractors.
  • Former employees.

WHICH TRANSIT IS COVERED BY THE LAW?
Covered Not Covered
  • New York City regional mass transit services, including Metropolitan Transportation Authority (MTA) subway and bus; Long Island Rail Road; Amtrak; New Jersey Transit; and Metro-North.
  • Eligible ferry and water taxi services.
  • Eligible vanpool services.
  • Eligible commuter bus services.
  • Access-A-Ride and other area paratransit providers.
  • Parking expenses.
  • Bicycling expenses, including CitiBikes.**

**Under federal tax law, employees cannot use pre-tax income for the qualified bicycle commuting reimbursement benefit, and bicycle rental fees are not qualified transportation fringe benefits.

WHAT INFORMATION AND RESOURCES ARE AVAILABLE?
For Employers For Employees
Contact 311 or visit nyc.gov/commuterbenefits for information about: Contact 311 or visit nyc.gov/commuterbenefits for information about NYC’s Commuter Benefits Law.

For employees eligible for refundable tax credits like the Earned Income Tax Credit (EITC), the pre-tax transit benefit could reduce the amount of a tax credit. Employees should consult a tax professional.

Contact 311 or visit nyc.gov/consumers for information about:

QUESTIONS?
Contact DCWP in the following ways:
  • Use DCWP Online Services to ask a question online 
  • Call 311 (212-NEW-YORK outside NYC) and ask for information about Commuter Benefits


Page updated 10/2023.