25 October 2018 Seattle to require employers provide pretax commuter benefits Seattle is poised to become the most recent city to require that employers provide pretax commuter benefits to employees. The Seattle City Council voted unanimously on October 1, 2018, to require this benefit for employees. (CB 119329.) The ordinance now goes to Mayor Jenny A. Durkan for approval. Under the ordinance, effective at the latest January 1, 2020, private city employers of 20 or more employees are required to offer pretax commuter benefits to all employees who worked an average of 10 or more hours per week in the previous calendar month. New employees must have the benefit offered to them within 60 days of beginning employment. Employers must begin the payroll deduction within 30 days of the employee's election. The employee may elect to exclude from taxable income qualified transportation benefits (except parking) up to the maximum level allowed by federal law (IRC Section 132(f)) as it stood as of June 1, 2018 (currently $260 per month for transit and van pool benefits). Seattle joins several other cities (e.g., Berkeley, Los Angeles, Richmond, and San Francisco, California; New York City; and Washington, DC) in requiring employers to provide this benefit. See our special report for more information on localities that mandate employers provide commuting benefits and the implications under the Tax Cuts and Job Act.
Document ID: 2018-2132 | |||||||||
