Effective January 1, 2016, a new law will require New York City companies with 20 or more full-time employees to offer pre-tax transit benefits, which will enable their employees to save on their commuting expenses.
According to the American Public Transportation Association, one-fifth of all mass transit riders in the United States are in New York City. In 2014, a survey by TransitCenter found that when employers offer pre-tax transit benefits, their employees are over five times more likely to use mass transit regularly than employed persons who do not receive the benefit.
According to the Riders Alliance, this new ordinance is expected to give as many as 450,000 additional people access to this benefit.
With this new law, we expect smaller companies to take advantage of a benefit that many larger companies are already offering. The Merriam Agency looks forward to working with New York City employers and implementing a great benefit that will not only save the employees money but also save the company money too. It’s a win win!