Industry-leading employer benefits provider Edenred is here to help employers comply with the new law by setting up programs that benefit both employers and employees
Boston, MA /PRNewswire/ - Philadelphia is about to become the latest city in the United States to require businesses to provide a commuter benefits program for employees thanks to a new law passed earlier this year by Philadelphia City Council.
Starting December 31st, the new commuter benefits law will go into effect. Good news for employers, the mandate will require businesses with 50 or more covered employees to offer employees a pre-tax payroll deduction to help them commute to the office by public transportation. Employees who choose to ride a bike can also get reimbursements for qualified bike expenses.
Alternately, employers can offer a paid benefit for employees to ride public transportation. For a business to qualify, at least 50 employees must be in the city.
Employees who work 30 or more hours per week on average are eligible for the benefit if they have worked for the same employer for the past year. They have access to the pre-tax benefit that allows them to deduct money from their paychecks before taxes and use it towards commuting costs.
In 2022, the federal government allowed employees to deduct a maximum of $280 per month for commuter costs and is expected to increase to $300 per month starting on January 1st, 2023.
Edenred can help any Philadelphia business offer the best commuter benefits programs for their employees. Since 1985, Edenred is the nation's only comprehensive pre-tax commuter benefits in the U.S., providing quality programs, competitive pricing, and full compliance with IRS regulations to more than 10,000 employers and 10 million eligible employees. Edenred also offers several features, including easy online administration, in-house customer service, direct employee delivery, and a simple sign-up process.
Edenred has worked in the Philadelphia area on other transportation initiatives, including being the Delaware Valley Regional Planning Commission's longtime fulfillment partner and operating the RideEco commuter benefit program since March 2020. RideEco offers commuter benefits to companies located in the Delaware Valley who want to offer the benefit to employees. Riders can purchase passes, tickets, and tokens from every transit agency in the area. Vanpool services are eligible for commuter benefits and there's a premium program that allows employees to order prepaid commuter benefit cards or transit cards, and other materials.
"With our presence in the Philadelphia area, we are excited to help more businesses add commuter benefits to their benefit packages," said Ed Fleischmann, General Manager of Edenred USA. "We are here to make sure you comply with the new law and offer your employees the best programs available in the market. This is a great opportunity to help your company and employees save money as well as make commuting to the office easier and safer. "
Edenred is a leading digital platform for services and payments and the everyday companion for people at work, connecting over 50 million users and 2 million partner merchants in 45 countries via more than 900,000 corporate clients.
Edenred offers specific-purpose payment solutions for food (such as meal benefits), mobility (such as multi-energy, maintenance, toll, parking, and commuter solutions), incentives (such as gift cards, employee engagement platforms) and corporate payments (such as virtual cards).
True to the Group's purpose, "Enrich connections. For good.", these solutions enhance users' well-being and purchasing power. They improve companies' attractiveness and efficiency and vitalize the employment market and the local economy. They also foster access to healthier food, more environmentally friendly products, and softer mobility.
Edenred's 10,000 employees are committed to making the world of work a connected ecosystem that is safer, more efficient, and more responsible every day.
In 2020, thanks to its global technology assets, the Group managed close to €30 billion in business volume, primarily carried out via mobile applications, online platforms, and cards.
Edenred is listed on the Euronext Paris stock exchange and included in the following indices: CAC Next 20, CAC Large 60, Euronext 100, FTSE4Good, CAC 40 ESG and MSCI Europe.
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