NEW YORK, Oct. 27, 2015 (GLOBE NEWSWIRE) -- WageWorks, Inc. (NYSE: WAGE), a leader in administering Consumer-Directed Benefits including transit and parking programs, reminds New York City businesses of the Jan. 1, 2016 deadline to comply with the New York City Transit Ordinance.
The New York City Transit Ordinance requires companies with 20 or more full-time employees to offer pre-tax transit benefits to their employees. Current tax laws allow commuters to set aside pre-tax wages to pay for monthly commuting expenses on public transportation. The current IRS limit is $130 per month.
"Many companies with employees in the five boroughs are unaware of what this means for them or how to comply," said Dan Neuburger, President of WageWorks Commuter Services. "Thousands of local businesses will be helped by this new transit ordinance. The benefit saves employees up to 40% on the cost of their daily commute, and it also saves employers money on payroll taxes; the more employees that sign up, the more savings accrue for that employer."
Senator Charles Schumer (D – NY), a strong advocate for New York commuters said, "In the face of ever-increasing fare hikes, it is welcome news that almost all New York City companies will offer employees tax-free transit benefits that will save them money on their commuting costs. Using pre-tax transit benefits is a win-win-win that puts money back in hard-working commuters' pockets, encourages more use of mass transit -- and all the environmental benefits that brings, and saves employers money on payroll taxes. I am pleased to see New York City making strides for commuters, and I will continue to fight for federal commuter mass transit parity in order to put more money in the pockets of hard-working people across New York State."
"With the deadline to sign up right around the corner, I encourage commuting New Yorkers to take this time to look into this program. Not only will this law put more money back in New Yorkers' pocketbooks, it will also help ease the impact on our environment," said Rep. Joe Crowley (D-Queens, the Bronx), author of the Bike to Work Act, legislation that would allow workers to use pre-tax commuter benefits for bike share programs. "We must take steps to encourage the use of mass transit, and making it more affordable is certainly a move in the right direction."
Congressman Peter King (R – NY), the sponsor of the Commuter Parity Act of 2015, added "We need to ensure that public transportation remains a cost-effective choice, especially for Long Islanders who incur some of the highest commuting costs in the nation."
WageWorks has decades of experience administering pre-tax transit benefits in New York City. Each year, hundreds of thousands of employees nationwide save millions of dollars on their commuting expenses by using WageWorks.
"Public transit in New York City is a lifeline for millions of commuters," said Gene Russianoff, staff attorney and chief spokesman for the NYPIRG Straphangers Campaign. "The NYC Transit Ordinance is a big win for both transit riders and employers. And having a leading provider of Consumer-Directed Benefits such as WageWorks on board will make this transition easier for New York City employers and employees alike."
"While commuter benefits can be offered at any time throughout the year, with Open Enrollment starting soon and the looming Ordinance deadline, this is a good time for companies to offer commuter benefits to their employees and ensure they are compliant," added Neuburger.
Employers or employees looking for more information on the new ordinance and the value of pre-tax commuter benefits can visit https://www.wageworks.com/nyc-commuter-benefits.
About WageWorks
WageWorks (NYSE: WAGE) is a leader in administering Consumer-Directed Benefits (CDBs), which empower employees to save money on taxes while also providing corporate tax advantages for employers. WageWorks is solely dedicated to administering CDBs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, COBRA, and other employee benefits. WageWorks makes it easier to understand and take advantage of Consumer-Directed Benefits for approximately 45,000 employers and over 4 million people. WageWorks is headquartered in San Mateo, California, with offices in major locations throughout the United States. For more information, visit www.wageworks.com.