City of Philadelphia Employee Commuter Transit Benefit Programs: Effective December 31, 2022

The City of Philadelphia has enacted an ordinance requiring certain employers to offer a commuter transit benefit program to eligible employees effective December 31, 2022. Below is a key summary of the programs.

Effective Date: December 31, 2022

Covered Employers: Employers with 50 or more compensated employees who work on average 30 hours per week within the geographic boundaries of Philadelphia for the same employer within the previous 12 months.

Requirement: Covered employers must make available to all its covered employees at least one of the following employee commuter transit benefit programs:

1. Election of pre-tax payroll deduction for mass transit expense or qualified bicycle expense consistent with the IRC (e.g., reasonable expenses related to the purchase, maintenance, repair and storage of bicycles used for commuting).
2. Employer-provided fare instrument (e.g., any pass, token, fare card or similar item entitling a person to transportation on public transit).
3. Any combination of (1) or (2).

Maximum Limits: At least up to the federal limits (2023: $300/ month).

Penalty: If an employee alleges that the employer failed to comply with the programs, that will trigger an investigation of the employer. If the employer is found to be in violation of the programs, they will have 30 days to comply with the ordinance. Subsequently, if the employer continues to be in violation of the programs, the penalty may be assessed each day that the employer fails to satisfy the program requirements.

The City of Philadelphia Ordinance: Employee Commuter Transit Benefit Programs »