Seattle Transit Benefits Ordinance becomes effective on January 1, 2020. In 2018 the Seattle City Council passed the ordinance requiring Seattle employers to offer employees the opportunity to use pre-tax income to purchase qualified transit benefits. The new ordinance requires all employers with more than 20 employees to adopt a Qualified Transportation Plan (QTP) as dictated by the IRS Code 132(f) by January 1, 2020.

Some Seattle employers are exempt , but most are not. To see information on eligibility and compliance – go to the city’s Q&A. Another reference is the Employer’s Tax Guide to Fringe Benefits.

If you determine you are required to put this plan in place, we recommend that you don’t do it alone – work with a professional organization. We can recommend Sound Benefit Administration (SBA) to provide that service and expertise. They have been administering these types of plans since 2004. Contact SBA @ (360) 779-7047.