Seattle Commuter Benefits Law Will Take Effect January 1, 2020
Effective January 1, 2020, employers with 20 or more employees in Seattle, Washington, will be required to provide pre-tax transit benefits to employees. The Seattle Office of Labor Standards will begin enforcing the law on January 1, 2021 [Ordinance No. 125684, L. 2018].
Employers must make the offer of the pre-tax election of commuter benefits to an employee within 60 calendar days of the employee beginning employment. The commuter benefit will allow employees to elect to exclude qualified transportation fringe benefits (except for parking) incurred for transit expenses or vanpool expenses from the employee’s taxable wages, up to the maximum level allowed by federal law. Employers must provide the payroll deduction within 30 calendar days of the employee selecting the benefit.
Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.