How to comply with the

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How to comply with the SF Transit Benefit
Ordinance
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Goal of workshop Attendees will leave the
workshop with a clear understanding of how IRS
Section 132(f) works, how to comply with the
transit benefit ordinance and have an
understanding of the options available to
administer their program. Overview Overview of
the Ordinance Understanding the IRS Section
132(f) Code Overview of the options available New
bicycle benefit TransLink/EZRider
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Only in San Francisco

• SF Leads the Way
• Paid Sick Leave (All employers)
• Health Care Security Ordinance (20 employees)
• Trend From SF to State

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SF Transit Benefits Ordinance

• August 8, 2008 SF Board of Supervisors passed
  Ordinance No. 199-08
• Mandate has strong support in SF business
  community SF Chamber BOMA SF, etc.
• Designed to help SF achieve its goal to reduce
  CO2 emissions within the City and County to 20
  below 1990 levels by the year 2012

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SF Transit Benefits Ordinance

• Ordinance requires employers with at least 20
  employees to offer at least one of three benefit
  options.
• All employees counted (full-time, part-time,
  temporary)
• Include employees who work outside County
• Governmental entities not included

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SF Transit Benefits Ordinance

• Six month till compliance (January 19, 2009)
• Non-compliance
• 100 for first violation
• 200 for second violation (in same year)
• 500 for each additional (in same year)

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Transit has come a long way in San Francisco
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and so has the transit benefit.

• 1991 Transit benefit begins in the Bay Area
  (21 Maximum allowed only
  as a subsidy)
• 1998 Commuter Choice Legislation Passes
  allows pre-tax deduction
• 2007 Benefit increased to 115
• 2008 SF Board of Supervisors passes
  legislation
• 2009 Additional increase in cap to 230 20
  bicycle amendment

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Benefits to Employers

• Saves up to 190 per employee per year in
  payroll taxes
• Creates an excellent employee recruitment and
  retention tool
• Improves employee morale and productivity
• Reduces parking lot congestion with more
  transit/vanpool usage
• Helps reduce local traffic congestion and
  improves air quality

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Benefits to Employees

• Saves up to 1000 a year in personal income
  taxes
• Creates an incentive to try a more relaxing
  and economical commute
• Using transit or vanpools helps to improve
  air quality and the general quality of life in
  the Bay Area

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Thousands of employers already participate in the
Bay Area
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• IRS and 132 (f)
• -- Very Flexible --
• 2 Key Points
• Cannot exceed maximum per month of 230
• No cash reimbursement

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Three ways to offer the transit benefit A.
pre-tax payroll deduction B. subsidy, in
addition to salary C. a combination of the two
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• Two ways to set up your transit benefit
• Do it yourself
• Less than 100 employees
• You have one work site
• B. Have someone else do it for
  you--using a third party administrator
  (TPA)
• Larger companies
• Multiple work sites

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Option 1 Do it Yourself 9 steps to
setting up your program
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1 Choose the type of program
Debit Cards - IRS compliance
Transit Passes - Available from all transit
agencies
Vouchers - Universal acceptance
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2 Get management approval
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3 Identify key personnel
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4 Create and distribute survey/enrollment form
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5 Tabulate surveys
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6 Arrange for payroll to establish a deduction
code
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7 Order passes/vouchers/debit cards
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8 Distribute benefit to employees
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9 Update your personnel policy handbook
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Option 2 Have someone else do it for
you Selecting a Third Party Administrator
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1 Research options
The Department of the Environment has a list of
vendors
2 Meet with a representative
Make sure to understand costs, timeframes, and
your responsibilities
3 Sign agreement
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The benefit can be used for all transit and
vanpools in the greater Bay Area including.
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Also consider including bicyclingit is now
covered up to 20 a month!
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Also works with Translink!
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The mode of transportation that you choose has a
greater effect on the environment than any other
decision you make as a consumer. -Union of
Concerned Scientists