Effective January 1, 2016, businesses, including nonprofits, located in the District of Columbia with 20 or more employees must provide pre-taxed transportation benefits. Under the District of Columbia Employer Transit Benefits Ordinance employers must provide at least 1 of the 3 approved program options.
The first option is a benefit program that allows employees to make a monthly pre-tax election to pay for “commuter highway vehicle, transit, or bicycling benefits” at benefit levels at “least equal to the maximum amount that may be deducted for such programs from an employee’s gross income.”
The second option is an “employer-paid benefit program whereby the employer supplies, at the election of the employee, a transit pass for the public transport system requested by each covered employee or reimbursement of van-pooling or bicycling costs to an amount at least equal to the purchase price of a transit pass for an equivalent trip on public transport.”
The final option is an “employer-provided transportation at no cost to the covered employee in a van-pool or a bus operated by or for the employer.”
For more information or for a consultation regarding your legal issues, please contact McCollum & Associates, LLC, at (301) 864-6070, www.jmlaw.net, or firstname.lastname@example.org.