HomeEmploymentTime to Put together for the New Yr: Illinois’ Pre-Tax Commuter Advantages...

Time to Put together for the New Yr: Illinois’ Pre-Tax Commuter Advantages Regulation Goes into Impact in 2024


Starting on January 1, 2024, pursuant to Home Invoice 2068, Illinois employers situated throughout thirty-eight (38) counties and townships will probably be required to offer workers with a “pre-tax commuter profit.” That is one in every of various new Illinois legal guidelines impacting employers going into impact firstly of the brand new yr.

Home Invoice 2068 covers workers who work a median of at the least thirty-five (35) hours per week for compensation on a full-time foundation. An Illinois employer should present the mandatory “pre-tax commuter profit” if it: (1) is situated in both Cook dinner 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; and (2) employs fifty (50) or extra coated workers, (a) in a location listed in (1), and (b) at a location inside one mile of a fixed-route transit service.

Lined employers are required to offer coated workers with pre-tax commuter advantages permitting workers to make use of pre-tax {dollars} for the acquisition of a transit cross. The prices associated to such a purchase order should be excluded from an worker’s taxable wages and should be in an quantity as much as the federal restrict ($315 monthly for 2024). Lined employers should present this profit to coated workers starting within the first full pay interval following an worker’s preliminary 120 days of employment. Lined employers could adjust to this requirement by taking part in a program supplied by the Chicago Transit Authority or the Regional Transportation Authority.

Illinois joins a small variety of states and localities, together with New Jersey, New York Metropolis, New York, Los Angeles, California, and Philadelphia, Pennsylvania, requiring employers to offer transportation advantages to their workers. Whereas the regulation doesn’t specify the results of noncompliance, coated Illinois employers ought to start to take steps to make sure they’re ready to adjust to the regulation’s necessities by the January 1, 2024 efficient date.

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