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Chicagoland Employers Must Provide Transit Benefit to All Full-Time Employees in 2024
Time is up if you are a Chicagoland employer with 50 or more full-time employees not currently providing transit benefits. Beginning January 1, 2024, more employers will be required to provide employee with transit benefits under the Transportation Benefits Program Act (HB 2068; P.A. 103-0291).
This new law applies to employers with 50 or more full-time employees who work within the geographic area specified in the Act. Employers must be at an address that is located within one mile of a fixed-route transit service. Employers with these parameters will need to provide a pre-tax commuter benefit to covered employees. Full-time employees are those who perform at least 35 hours of work per week on a full-time basis.
Transit Benefits for Assigned Areas
The Act applies to employers located in the following geographic locations: Cook County; Warren Township in Lake County; Grant Township in Lake County; Frankfort Township in Will County; Wheatland Township in Will County; Addison Township; Bloomingdale Township; York Township; Milton Township; Winfield Township; Downers Grove Township; Lisle Township; Naperville Township; Dundee Township; Elgin Township; St. Charles Township; Geneva Township; Batavia Township; Aurora Township; Zion Township; Benton Township; Waukegan Township; Avon Township; Libertyville Township; Shields Township; Vernon Township; West Deerfield Township; Deerfield Township; McHenry Township; Nunda Township; Algonquin Township; DuPage Township; Homer Township; Lockport Township; Plainfield Township; New Lenox Township; Joliet Township; or Troy Township.
For 2023, the federal commuter benefits pre-tax limit is $300 per month ($3,600 annually). The term “transit pass” is defined to include any pass, token, fare card, voucher or similar item entitling a person to transportation on a public transit under the authority of the Regional Transit Authority (RTA) or the Chicago Transit Authority (CTA). An employer may comply with the requirement by participating in a program offered by the RTA or CTA.