Illinois Will Require Commuter Benefits in Chicago Area
September 12, 2023
The State of Illinois recently passed the Transportation Benefits Program Act (Public Act 103-0291), requiring employers in specified areas around Chicago to provide commuter benefits to specified employees as of January 1, 2024.
Which employers must comply?
The act specifies that an employer who employs 50 or more employees at a location that is within one mile of a fixed-route transit service in one of the areas listed below must provide a pre-tax commuter benefit to all covered employees.
Who is considered a covered employee?
A "covered employee" is defined as any person who performs an average of at least 35 hours of work per week for compensation on a full-time basis.
What benefits must be provided?
The pre-tax commuter benefit shall allow employees to use pre-tax dollars for the purchase of a transit pass, via payroll deduction, such that the costs for such purchases may be excluded from the employee's taxable wages, up to the maximum amount permitted by federal tax law (under the rules established in Section 132(f)).
The maximum amount allowed to be set aside pre-tax for transit expenses in 2023 is $300. Employers are also permitted (but not required) to allow employees to set aside an additional $300 pre-tax for work-related parking expenses.
If you need assistance setting up a Commuter Benefit plan, contact us today!
| Addison Township | Lisle Township |
| Algonquin Township | Lockport Township |
| Aurora Township | McHenry Township |
| Avon Township | Milton Township |
| Batavia Township | Naperville Township |
| Benton Township | New Lenox Township |
| Bloomingdale Township | Nunda Township |
| Cook County | Plainfield Township |
| Deerfield Township | Shields Township |
| Downers Grove Township | St. Charles Township |
| Dundee Township | Troy Township |
| DuPage Township | Vernon Township |
| Elgin Township | Warren Township in Lake County |
| Frankfort Township in Will County | Waukegan Township |
| Geneva Township | West Deerfield Township |
| Grant Township in Lake County | Wheatland Township in Will County |
| Homer Township | Winfield Township |
| Joliet Township | York Township |
| Libertyville Township | Zion Township |
The Regional Transportation Authority's interactive map is a searchable map of addresses that are located within one mile of fixed-route transit service.