NYC and SF commuter benefit laws for retail chains
One pretax commuter plan satisfies both the New York City and San Francisco mandates, because both ordinances build on the federal commuter benefit rule (§132(f)). Retail chains with locations in both cities face two different sets of rules, but one well-designed pretax plan covers both.
NYC's rule
Employers with 20+ full-time non-union employees must offer covered employees a §132(f) pretax election. The 2026 monthly limits are $340 for transit and $340 for parking. Penalties: $100 to $250 for a first violation if not cured within 90 days.
SF's rule
Employers with 20+ employees (counted across the company, not just SF) must offer one of:
- A §132(f) pretax election.
- An employer-paid transit or vanpool subsidy.
- Employer-provided transportation.
SF's ordinance also coordinates with the Bay Area regional program for employers with 50+ employees across the nine-county Bay Area.
How retail employers usually structure it
The pretax election (option 1) is the lowest-cost compliance path and works for both jurisdictions. Alice administers it. Employees in NYC use it for MTA/OMNY, LIRR, NJ Transit, PATH, and parking. Employees in SF use it for Muni, BART, Caltrain, AC Transit, Clipper, ferry, and parking.
Bay Area regional registration
If your chain has 50+ employees in the Bay Area total, you also register with the BAAQMD-administered Bay Area Commuter Benefits Program. That's a separate filing the employer makes. Alice's pretax administration satisfies the §132(f) requirement that underlies the program.
What Alice handles
There is no up-front employer cost, no manual open enrollment to manage, and no employee pre-funding. 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 ADP, UKG, Paylocity, Paycom, Paychex, and Toast.
Operational simplicity
One contract, one payroll integration per payroll provider, one card product. Alice maintains compliance documentation for each jurisdiction's recordkeeping requirement (typically three years).
Talk to sales
sales@thisisalice.com or (929) 552-4625.
Specific benefits, election rules, and run-out periods depend on your employer's plan design. Check with your HR team or plan administrator for details.
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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Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.