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July 5, 2022

Philadelphia Passes Commuter Benefits Requirements

Dawson McPherson
Dawson McPherson
Senior Content Marketing Specialist

Philadelphia will soon be the next major U.S. city to adopt a commuter benefits mandate for eligible employers.

On June 9, 2022, the Philadelphia City Council passed an ordinance that will require certain employers to offer a pre-tax commuter benefits program to their employees. The Philadelphia mayor is expected to sign the bill soon. 

Key Takeaways 

  • When signed into law, the bill will take effect December 31, 2022
  • It applies to employers that have 50 or more employees who reside in the city
  • Under the law, covered employees must be offered a pre-tax payroll deduction for commuting expenses such as mass transit or qualified bicycle expenses
  • Covered employee = Has averaged working at least 30 hours per week in Philadelphia for the same employer in the previous 12 months (excludes unpaid interns, volunteers, and those working in unpaid apprenticeships)

Most employers in Philadelphia who already offer commuter benefits do so with a Commuter Reimbursement Account (CRA). A CRA allows employees to utilize pre-tax dollars for eligible work-related parking, mass transit, and commuter highway vehicle expenses. 

Employers who do not have a solution in place to meet the new commuter benefits requirements should begin planning now. 

How Ameriflex Can Help

Ameriflex offers a commuter benefits solution that meets Philadelphia’s commuter requirements. We make it easy for employees to utilize their commuter benefits through:

  • A benefits Mastercard for easy and quick payment of commuter expenses
  • A mobile app for tracking account balance, transactions, and claims
  • A dedicated service team who can answer questions and assist with inquiries 

Ameriflex is keeping a close eye on the progression of the commuter legislation and will update our clients and partners on appropriate next steps to stay compliant. 

To learn more about commuter benefits through Ameriflex, contact us today

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