(Tuesday, October 07, 2014)
San Mateo, CA (October 7, 2014) – WageWorks, Inc. (NYSE: WAGE), a leader in administering Consumer-Directed Benefits, applauds the New York City Council for passage of a new city code, Intro 295-A, affording hundreds of thousands more New Yorkers access to pre-tax transit benefits.
This new local law requires New York City companies with 20 or more full-time employees to offer pre-tax transit benefits, which will enable their employees to save on their commuting expenses.
“WageWorks and TransitChek, a division of WageWorks, applaud the efforts of the New York City Council, and in particular, Councilman Daniel Garodnick, for taking this important step toward helping commuters in New York City save money on the cost of their commute and freeing up funds for their employers by reducing their payroll tax liability,” said Dan Neuburger, President of WageWorks Commuter Services. “This legislation should help reduce road congestion, improve air quality, and help the New York City economy by saving money for employees and employers alike. This is a win-win for everyone.”
According to the American Public Transportation Association, one-fifth of all mass transit riders in the United States are in New York City. In 2014, a survey by TransitCenter found that when employers offer pre-tax transit benefits, their employees are over five times as likely to take transit regularly as employed persons who are not receiving the benefit.
According to the Riders Alliance, this new ordinance is expected to give as many as 450,000 additional people access to this benefit.
“This legislation is expected to result in smaller companies taking advantage of a benefit that many large companies already offer. As this legislation goes into effect, WageWorks looks forward to working with New York City employers and sharing our wealth of experience in implementing commuter benefit programs that are easy to administer and maximize savings,” said Neuburger.
The legislation now moves on to New York City Mayor Bill de Blasio for his signature. The new law is scheduled to take effect January 1, 2016.
WageWorks (NYSE: WAGE) is a leader in administering Consumer-Directed Benefits (CDBs), which empower employees to save money on taxes while also providing corporate tax advantages for employers. WageWorks is solely dedicated to administering CDBs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, COBRA, and other employee benefits. WageWorks makes it easier to understand and take advantage of Consumer-Directed Benefits for 58,000 employers and approximately 4.5 million people. WageWorks is headquartered in San Mateo, California, with offices in major locations throughout the United States. For more information, visit www.wageworks.com.