S535-2011 Actions

• May 7, 2012: RECOMMIT, ENACTING CLAUSE STRICKEN
• Jan 4, 2012: REFERRED TO LABOR
• Jan 5, 2011: REFERRED TO LABOR

S535-2011 Memo

BILL NUMBER:S535

TITLE OF BILL:
An act
to amend the labor law, in relation to requiring certain employers offer
a qualified transportation fringe benefit program for employees

PURPOSE:
Requires certain employers shall establish qualified transportation
fringe benefit programs for employees.

SUMMARY OF PROVISIONS:
Amends the labor law by adding a new article 32, entitled the Employee
Transportation Expenses Act, which requires that employers with 50 or
more employees, not including public employers, offer their employees
the opportunity to pay qualified commuting costs through their
employer out of pre-tax income, in accordance with section 132 of the
internal revenue code.

JUSTIFICATION:
Since 2002, federal tax law has allowed employees to set aside up to
$100 per month of their gross income through their employer to pay
qualified mass transit or vanpool commuting costs. The employee can
save up to $400 annually because the amount set aside is not subject
to federal or state income taxes. The employer saves money because
any employee gross income set aside under the program is also exempt
from payroll taxation.

Employers also have the option of paying their employees up to $100
per month in transportation benefits to cover qualified mass transit
or vanpool commuting costs. Under this option, the employee still
receives tax-free income and the employer gets both a tax deduction
and a possible reduction in payroll taxes if the transportation
benefit is used to offset other wages. In either case, an employee is
always free to choose whether or not to participate.

By requiring large employers to offer this program, this bill will
encourage the use of mass transit. For those employees who already
commute to work using mass transit, it will offer significant tax
savings. Participating employers will also reduce their tax burden.

LEGISLATIVE HISTORY:
2004   A.8916 - Referred to Labor
2006   S.4431 - Referred to Labor
2008   S.2236 - Referred to Labor
2009   S.1858 - Referred to Labor

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

S535-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          535
 2011-2012 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 5, 2011
 
 Introduced  by Sens. KLEIN, DIAZ, DILAN, KRUEGER, SAMPSON, SMITH, STAVI
 SKY -- read twice and ordered printed, and when printed to be  commit
 ted to the Committee on Labor
 AN  ACT to amend the labor law, in relation to requiring certain employ
 ers offer  a  qualified  transportation  fringe  benefit  program  for
 employees
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. The labor law is amended by adding a new article 32 to read
 as follows:

 ARTICLE 32
 EMPLOYEE TRANSPORTATION EXPENSES ACT
 SECTION 930. SHORT TITLE.
 931. APPLICABILITY; DEFINITIONS.
 932. QUALIFIED TRANSPORTATION FRINGE BENEFIT PROGRAM.
 

S 930. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
 THE "EMPLOYEE TRANSPORTATION EXPENSES ACT".
 

S  931. APPLICABILITY; DEFINITIONS. 1. THIS ARTICLE SHALL APPLY TO ANY
 EMPLOYEE OF A BUSINESS WITH FIFTY OR MORE EMPLOYEES.
 2. FOR PURPOSES OF THIS ARTICLE: A. "EMPLOYER" SHALL MEAN ANY  PERSON,
 PARTNERSHIP,  FIRM,  ASSOCIATION, LIMITED LIABILITY COMPANY, OR DOMESTIC
 OR FOREIGN CORPORATION; PROVIDED, HOWEVER, SUCH TERM SHALL  NOT  INCLUDE
 PUBLIC EMPLOYERS, INCLUDING THE STATE.
 B.  "PROGRAM  ADMINISTRATOR"  SHALL  MEAN THE AGENT, AS DETERMINED AND
 DESIGNATED BY THE EMPLOYER, RESPONSIBLE FOR THE MAINTENANCE AND  MANAGE
 MENT  OF  THE QUALIFIED TRANSPORTATION FRINGE BENEFIT PROGRAM AS AUTHOR
 IZED IN SUBDIVISION ONE OF SECTION NINE HUNDRED THIRTY-TWO OF THIS ARTI
 CLE.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04418-01-1
 
       S. 535                              2
 

S 932. QUALIFIED  TRANSPORTATION  FRINGE  BENEFIT  PROGRAM.  1.  EVERY
 EMPLOYER  SHALL  ESTABLISH  A  QUALIFIED  TRANSPORTATION  FRINGE BENEFIT
 PROGRAM CONSISTENT WITH SECTION 132 OF THE  INTERNAL  REVENUE  CODE  AND
 REGULATIONS  ADOPTED  PURSUANT  THERETO,  AND  IMPLEMENT  SUCH  PROGRAM.
 FOLLOWING THE ESTABLISHMENT OF A QUALIFIED TRANSPORTATION FRINGE BENEFIT
 PROGRAM  AS REQUIRED BY THIS SUBDIVISION EMPLOYEES SHALL BE PERMITTED TO
 USE PRE-TAX EARNINGS TO PURCHASE QUALIFIED TRANSPORTATION  BENEFITS,  IN
 ACCORDANCE  WITH  FEDERAL  LAW  AND  SHALL  BE ENTITLED TO SUCH PERSONAL
 INCOME TAX BENEFITS AS MAY BE AUTHORIZED BY SUCH LAW.
 2. AT THE REQUEST OF  AN  EMPLOYEE,  AN  EMPLOYER  SHALL,  BY  PAYROLL
 DEDUCTION,  REDUCE  THE  AMOUNT  OF COMPENSATION ELECTED BY THE EMPLOYEE
 PURSUANT TO PROGRAM REGULATIONS  AND  SECTION  132(F)  OF  THE  INTERNAL
 REVENUE  CODE FOR THE PURPOSE OF PROVIDING THE EMPLOYEE WITH A QUALIFIED
 TRANSPORTATION FRINGE BENEFIT AS AUTHORIZED IN SUBDIVISION ONE  OF  THIS
 SECTION,  AND  SHALL  TRANSFER  THE  AMOUNT SO REDUCED TO THE AUTHORIZED
 PROGRAM ADMINISTRATOR.
 3. MONEYS DEDUCTED FROM THE SALARIES OF EMPLOYEES OF  EMPLOYERS  SHALL
 BE HELD BY THE PROGRAM ADMINISTRATOR AS AGENT FOR THE EMPLOYER AND SHALL
 BE  ACCOUNTED  FOR  SEPARATELY.  ALL  PAYMENTS  OF MONEYS BY THE PROGRAM
 ADMINISTRATOR SHALL BE MADE ONLY IN ACCORDANCE WITH THE QUALIFIED TRANS
 PORTATION FRINGE BENEFIT PROGRAM.
 4. TO THE EXTENT PERMITTED BY SECTION 132 OF THE INTERNAL REVENUE CODE
 AND REGULATIONS ADOPTED PURSUANT THERETO, ANY  SALARY  DEDUCTED  FROM  A
 PARTICIPATING  EMPLOYEE'S ANNUAL COMPENSATION FOR THE PURPOSE OF PROVID
 ING SUCH EMPLOYEE WITH A QUALIFIED TRANSPORTATION FRINGE  BENEFIT  SHALL
 BE  CONSIDERED  PART OF ANNUAL COMPENSATION FOR THE PURPOSE OF COMPUTING
 RETIREMENT BENEFITS.
 5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,  WHERE
 AND  TO  THE  EXTENT THAT, AN AGREEMENT BETWEEN AN EMPLOYER AND A RECOG
 NIZED EMPLOYEE ORGANIZATION ENTERED INTO ON BEHALF  OF  EMPLOYEES  IN  A
 COLLECTIVE  NEGOTIATING  UNIT  PROVIDES  FOR  A QUALIFIED TRANSPORTATION
 FRINGE BENEFIT AS PROVIDED BY THIS SECTION, SUCH  QUALIFIED  TRANSPORTA
 TION  FRINGE BENEFIT SHALL BE ESTABLISHED IN ACCORDANCE WITH SUCH AGREE
 MENT.
 6. THIS SECTION SHALL NOT BE CONSTRUED TO REQUIRE EMPLOYERS TO PROVIDE
 TRANSPORTATION FOR EMPLOYEES.
 

S 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.

Discuss!