The Seattle Commuter Benefits Ordinance (SMC 14.30) aims to promote the use of public transit and vanpools among workers in Seattle, helping to decrease traffic congestion and reduce carbon emissions. By facilitating pre-tax payroll deductions for transit or vanpool expenses, the ordinance benefits both employees and employers by lowering their taxable income and, consequently, their tax bills.
Important Note:
- Eligibility Requirements: Businesses with 20 or more employees are required to offer pre-tax commuter benefits. Covered employees include those who average ten or more hours per week in Seattle in the previous calendar month.
- Commuter Benefit Details:
- Pre-Tax Deductions: Employers must offer employees the option to make pre-tax payroll deductions for qualified transportation fringe benefits, excluding parking. This includes transit expenses such as passes for mass transit facilities and vanpool expenses.
- Transit and Vanpool Expenses: These are defined according to federal guidelines. Transit expenses include costs for passes and fare media for public transit. Vanpool expenses cover commuting in a vehicle with a capacity of at least six adults.
- Pre-Tax Deductions: Employers must offer employees the option to make pre-tax payroll deductions for qualified transportation fringe benefits, excluding parking. This includes transit expenses such as passes for mass transit facilities and vanpool expenses.
- Employer Responsibilities:
- Written Offers: Employers must provide the offer of a pre-tax election commuter benefit in writing and are encouraged to do so in the employee’s primary language.
- Subsidized Transit Passes: Employers can meet their obligations through fully or partially subsidized transit passes. A fully subsidized pass must cover unlimited travel on King County Metro and Sound Transit Link Light Rail.
- Written Offers: Employers must provide the offer of a pre-tax election commuter benefit in writing and are encouraged to do so in the employee’s primary language.
- Notice and Posting Requirements: All eligible employers must make their employees aware of this benefit and offer it as a part of their compensation package, unless they have a more generous policy of their own that covers the same benefit offered under this ordinance. In addition, employers must display a workplace poster with commuter benefit rights in English and the primary language(s) of their employees. This poster must be placed conspicuously at all workplaces or job sites.
- Enforcement and Compliance: The Office of Labor Standards (OLS) is responsible for enforcement and will provide technical assistance, determine violations, and prescribe remedies. A 90-day cure period is available, during which employers can show proof of compliance to avoid penalties.
Other Resources:
FAQ Sheet: OLS compiled a comprehensive FAQ sheet that you can refer to for commonly asked questions.
FAQ Sheet: OLS compiled a comprehensive FAQ sheet that you can refer to for commonly asked questions.
Guideline for Administering the Law: OLS also provided detailed guidelines to help business owners administer the law properly.
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