What is the Commuter Benefits Ordinance?
The City of Seattle passed a Commuter Benefits Ordinance requiring employers to offer a commuter benefit. This means businesses with more than 20 total employees are required to offer their employees the opportunity to make a monthly pre-tax payroll deduction for transit or vanpool expenses.
How Companies Can Comply
There are many ways to comply, with the easiest and often most cost-saving option being Pre-Tax Commuter Benefits. Pre-tax commuter benefits are a simple and great way to help employees save on their commuting costs. Employers can provide the option of taking pre-tax deductions from employee paychecks each month to put toward qualified commuting expenses. In addition to saving employees hundreds of dollars, employers can also save as much as 8% on payroll taxes, making pre-tax benefits a win for everyone!
Employers can also easily invest in a ORCA for Business program for their employees. ORCA for Business provides subsidized transit passes to your employees. Learn more about ORCA for Business program options.
Connect with a specialist.
Did you know… all Seattle employers with 20 or more employees are required to offer a commuter benefit.
Here are a few advantages of offering pre-tax deductions:
- Offer commuter benefits that improve hiring and retention of highly skilled employees
- Promote the use of transit, freeing up parking and reducing congestion around your
- Save your employees up to 40% on their commuting costs
Read more details on the Commute Benefits Ordinance rules and regulations here.
How We Can Help
Provide New Benefits
If you’re an employer who wants to save employees money on their commutes but would like to know how, we can help.
Commute Seattle can help you find the right program for your business’ needs. If you’re interested in learning how your company can start offering pre-tax benefits, reach out to a Transportation Specialist at 206-613-3233 or Pre-Tax@commuteseattle.com.
Upgrade Current Benefits
If you’re a business already providing an ORCA or another transit pass to your employees and subsidizing part of the costs, you can save yourself and your employees even more by offering pre-tax deductions
Pre-tax deductions are a great addition to ORCA Passport or Choice accounts, allowing employers to subsidize their desired amount while saving themselves and their employees on their taxes.
What are Commuter Benefits?
Which commuting expenses are covered?
How much is this going to cost my business?
What is a pre-tax deduction?
What do the employer and employee save by offering pre-tax benefits?
Can I add pre-tax to my company’s current commuter benefits program?
How many employees do I need to sign up for pre-tax benefits?
How do I begin offering pre-tax benefits?
Looking for more commuting options? We’re here to help.
From compliance to benefits, our transportation specialists will get you where you need to go.