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

What’s in this article?

Other Recent Posts
The Consolidated Appropriations Act (CAA) was passed in 2021, and although it brought significant changes that will continue to impact employers offering group health insurance and their employees, many organizations still haven’t made changes to meet the mandates. What are the key requirements of CAA legislation that employers need to act on? Gag Clause One...
What is the Transportation Benefits Program Act? The State of Illinois recently passed the “Transportation Benefits Program Act” that will go into effect January 1, 2024, and require employers with 50 or more employees located in specific areas to offer a pre-tax commuter benefit to “covered employees.” Employees who take advantage of the benefit can...
SPD WRAP Ultimate Guide
July 10, 2023
What you need to know about SPD WRAP A Summary Plan Description (SPD) is an ERISA requirement for most employers offering group benefits. It’s the document that outlines the details and terms of a group’s health plan in understandable language for all eligible plan participants. ERISA guidelines dictate what information is to be included, to...
Stay Updated

Join us to stay on top of the latest healthcare news, legislation and product features from Ameriflex

We value your privacy
We will not rent or sell your information