As you probably already know and as previously posted on the Paypro website, New York City employers with 20 or more full-time employees will be required to offer pre-tax transit benefits to their employees starting on January, 1 2016 due to the New York City Transit Act.
But did you know that by offering such a program brokered by Paypro, you – the employer – can save, if not, make money, while complying with the New York City Transit Act?
Here’s the math: When an employee contributes the maximum monthly contribution of $130 for transit, or $250 for parking, you – the employer receives a monthly net savings (read: makes profit) of $3.95 and $13.13 respectively after Paypro’s monthly charge of $6 per employee for providing a Commuter Reimbursement Account. This equates to annual savings of $47.40 and $157.56 respectively, per employee.
Why wait for this new law to take effect? Start offering your employees transit benefits and reap the savings! If you don’t offer transit benefits by the effective date, not only will you miss out on these savings, you will also be subject to penalties of up to $250.
Contact Paypro’s New York location today to learn how we can assist you with easily and quickly setting up a transit benefit program for your organization.