BOSTON--(BUSINESS WIRE)--Edenred Commuter Benefit Solutions, the nation’s leading provider of commuter benefits, is thrilled about the passing of New York City Council Member, Daniel Garodnick's Affordable Transit Act, a bill making pre-tax commuter benefits a requirement for all NYC-area businesses with 20 or more employees.
The Riders Alliance, a New York City-based transit advocacy group, estimates that this new legislation makes pre-tax commuter benefits available to an additional 450,000 NYC-area employees. About 700,000 New Yorkers currently use the benefit.
A MONEY-SAVING LAW
Both employees and employers financially benefit from this tax break. Commuter benefits allow employees to use pre-tax income, up to the $130 IRS limit, to pay for their public transportation costs, which lowers their annual taxable income. It also benefits employers by reducing annual payroll taxes up to 7.65%
According to the Riders Alliance, an average New Yorker could save $443 every year, and a business could save $103 a year per employee using the benefit. They also estimate that this law will allow New Yorkers to keep more than $50 million each year in the local economy instead of spending the money on taxes. Commuter benefits are truly is a win-win all around.
Serving some of the nation’s largest companies and premier benefit administrators, Edenred has saved participating employers and employees nearly $500 million over the past five years by providing the opportunity to pretax various expenses that are essential to the daily routine.
“We applaud the efforts and support Mayor De Blasio in the passing of the Affordable Transit Act and promoting public transportation for a less congested, livable environment, while at the same time helping employees and employers save,” said Commuter Benefit Solutions Chief Operating Officer, Meltem Korkmazel. “Edenred Commuter Benefit Solutions acknowledges the leadership of Council Member Garodnick and the Riders Alliance in bringing this legislation to fruition.”
The Affordable Transit Act will go into effect on January 1, 2016.
About Commuter Benefit Solutions, by Edenred
Edenred Commuter Benefit Solutions is the nation’s only comprehensive commuter benefit solutions provider and number one resource for commuter savings. Since 1985, Edenred has served Fortune 100 and Fortune 500 companies, top third party benefit administrators and the nation’s largest metropolitan area transit authorities. With its premier solution offerings; Commuter Check, a nationwide commuter benefits program for employers; and WiredCommute, a private label program for third party administrators, Edenred is able to provide a one-stop total solution experience. Edenred’s mission is to make tax-free commuter benefits a staple in employee benefits packages nationwide.
Edenred Group is the worldwide leader in prepaid corporate solutions and has been providing employee benefits for more than 50 years. Edenred Group operates in 42 countries, with more than 6,000 employees, nearly 640,000 private and public sector customers, 40 million beneficiaries and 1.4 million affiliates.
In 2013, Edenred generated total issue volume of €17.1 billion, with almost 60% in emerging digital markets.