Illinois Transportation Benefits Program Act
Starting January 1, 2024 covered employers in specific locations within the Chicago metro region will be required to offer covered employees a pre-tax commuter benefit as result of the Transportation Benefits Program Act. This Illinois state law requires covered employers to allow eligible employees to use pre-tax dollars to purchase a transit pass via payroll deduction. A transit pass means any pass, token, fare card, voucher, or similar item entitling a person to transportation on public transit.
Employees can deduct up to $315 in pre-tax dollars monthly in 2024 to pay for a transit pass. The benefit must be available to covered employees beginning the first full pay period following 120 days of employment. An employer can comply with the law by participating in a program offered by the Chicago Transit Authority or the Regional Transportation Authority.
The following locations are specifically called out by the state law
- Cook 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; and
- Troy Township.
Covered Employee
This law applies to employees who perform an average of at least 35 hours of work on a full-time basis.
Covered Employer
Employers who employ 50 or more covered employees within any of the areas above at an address which is located within one mile of fixed-route transit service. You can use this map to determine if your location is within one mile of a fixed-route transit service.
Key Takeaways:
Employers with locations in the above listed areas should review the requirements of the Transportation Benefit Program Act to see if they must begin offering pre-tax transit benefits to covered employees on January 1, 2024.
The information provided is a summary of laws and regulations relating to employee benefit plan compliance. This information should not be construed as legal advice. In all cases, employers should consult with their own legal counsel.
