Commuter benefits compliance in Berkeley (TRACC)

Meta description: Berkeley's TRACC ordinance requires employers with 10+ employees to offer commuter benefits. Here's what counts and how Alice handles the pretax option.

Target keywords: Berkeley TRACC ordinance, Berkeley commuter benefits law, TRACC compliance, Berkeley pretax commuter, Berkeley 10 employee threshold

Footnote stack: Eligibility, IRS limits, Trademarks, Tax & legal advice

Body

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 §132(f) pretax payroll deduction (federal limits apply, $340/month transit and $340/month parking in 2026, though Berkeley's earlier ordinance text referenced a $125 figure that has since been superseded by the federal cap), an employer-paid transit/vanpool/bicycle subsidy, or an employer-funded shuttle. Recordkeeping is required for three years.

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 additionally register with the Bay Area Commuter Benefits Program administered by BAAQMD and MTC. TRACC and the regional program coexist; satisfying the federal §132(f) pretax option through Alice generally satisfies both, but 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 benefit companies where you pay up front and manually manage enrollment and payroll on your own don't fit that staffing model. Alice has no up-front employer cost, no manual open enrollment to manage, no employee pre-funding required, and only a small reserve deposit from the employer. We'll get you onboarded in one call. Alice connects with 30+ payroll providers, including connections to ADP, UKG, Paylocity, Paycom, Paychex, Toast, and others.

Berkeley employers: sales@thisisalice.com or (929) 552-4625. Employees: support@thisisalice.com or (888) 431-4355.

For the full list of eligible commuter expenses, see "What parking and transit expenses are eligible?" at help.thisisalice.com/article/52. Eligibility is set by IRC §132(f). Figures shown are for the 2026 plan year and are set by the IRS. Limits are indexed annually; we update this article each November when the IRS issues the following year's Revenue Procedure. Trademarks, brands, and product names referenced in this article are the property of their respective owners. References are for descriptive purposes only and do not imply endorsement. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.