Berkeley Commuter Benefits Ordinance (TRACC) guide
Berkeley's Tax Relief Action to Cut Commuter Carbon (TRACC) ordinance requires employers with 10 or more employees, based in Berkeley or with a Berkeley worksite, to offer commuter benefits. Part-time staff working an average of 10 hours per week or more count toward the threshold.
Three compliance options
Employers can pick one or more:
- A pretax payroll deduction under the federal commuter benefit rule (§132(f)). Federal limits apply: $340/month transit and $340/month parking in 2026.
- An employer-paid transit, vanpool, or bicycle subsidy
- An employer-funded shuttle
Berkeley's earlier ordinance text referenced a $125 figure. That has since been superseded by the federal cap. Recordkeeping is required for three years.
For the full list, see what parking and transit expenses are eligible.
Penalties
Berkeley assesses penalties case by case, up to $3,000 in the first year of violation, with 10% late fees and 1% monthly interest. Penalties escalate every 30 days.
Overlap with the Bay Area program
If a Berkeley employer also has 50+ employees across all Bay Area worksites, they must also register with the Bay Area Commuter Benefits Program. That program is administered by BAAQMD and MTC.
TRACC and the regional program coexist. Running the §132(f) pretax option through Alice generally satisfies both. Registration with BAAQMD is a separate filing.
Why Berkeley employers use Alice
Berkeley's restaurant, retail, and university-adjacent workforce skews hourly and part-time. Traditional office-worker pretax providers make you pay up front and manage enrollment and payroll yourself. That doesn't fit this staffing model.
Alice has no up-front employer cost and no manual open enrollment to manage. Employees don't pre-fund. The employer keeps a reserve amount in its Alice plan account; it belongs to the employer and is not a fee. Setup starts with one call.
Alice connects to 30+ payroll providers, including connections to ADP, UKG, Paylocity, Paycom, Paychex, Toast, and others.
Talk to sales
sales@thisisalice.com or (929) 552-4625.
Figures shown are for the 2026 plan year and are set by the IRS. Limits are indexed annually by the IRS.
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