HRS §78-53
Setting up a pretax transit benefit program
This section lets each chief executive create a program where employees can choose to take less pay before taxes to get transit benefits. The government pays for the benefits with the money saved. The chief executive can make contracts to set up and run the program.
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The statute, as written — Pretax transportation benefit program
(a) Each chief executive may establish a wage and salary reduction benefit program which qualifies as a pretax transportation benefit program within the meaning of section 132 of the Internal Revenue Code of 1986, as amended. The pretax transportation benefit program shall allow eligible employees to elect to reduce their pretax compensation in return for payment by the jurisdiction of the expenses of eligible benefits. (b) In addition to any other powers and duties authorized by law, each chief executive may enter into all contracts necessary to establish, administer, or maintain the pretax transportation benefit programs.
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