Introduction
Great news for Chicagoans! Legislative action has finally expanded the pre-tax Transit Benefit Program to workplaces across the Chicago region. This is a big step towards making daily commutes more affordable and promoting public transit as the preferred mode of regional travel. Signed by Governor Pritzker and set to take effect on January 1, 2024, the Transit Benefits Program Act is gearing up to change the way people commute in and around Chicago.
Key Highlights of the Transit Benefits Program Act
What Benefits Are Included?
Full-time employees now have the option to withhold up to $300 in pre-tax wages each month to purchase transit fare. The options for commuting aren’t limited to just buses or trains; they include vanpools and more. On average, participants can save up to 40% on commute costs.
Who is Eligible?
Employers with 50 or more full-time employees, located within a mile of a fixed-route transit service, are required to offer these benefits to their workers. New hires become eligible after 120 days on the job.
How to Enroll?
Companies can manage these benefits through human resources and payroll firms like ADP. They also have the flexibility to choose whether benefits will be ordered by an administrator each month or managed by individual employees.
Why Choose Transit?
Cost Savings
Not only does taking public transit save money on fuel and maintenance for your vehicle, but it also allows employees to save up to $1,000 per year on commute costs.
Time-Efficient
Ongoing construction projects have congested Chicago’s roads. The program helps save time by encouraging public transit use, a more efficient option in many cases.
Environmental Impact
Transit is an effective tool against climate change, saving an estimated 3.7 million metric tons of greenhouse gas emissions in 2018 alone.
Conclusion
The Transit Benefits Program Act is a win-win for both employers and employees. Not only does it make commuting more affordable and convenient, but it also encourages a greener, more sustainable mode of travel. It’s an excellent example of how public policy can effectively steer people towards choices that are beneficial both to them and to society at large.
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