Transit & Parking Plans

Transit & Parking Plans

What is a Qualified Transportation Benefit?
The IRS allows plan sponsors to establish qualified transportation reimbursement programs. These reimbursement accounts allow individuals the ability to set aside funds on a pre-tax basis to pay for work related parking and transit expenses. Contributions are withheld pre-tax to avoid state, federal, and FICA taxes; an estimated 30% savings. There are two types of accounts, the Transit Account and the Parking Account.

Transit Account
Effective March 1, 2009 the American Recovery and Reinvestment Act increased the amount employees can set aside pre-tax to pay for qualified transit expenses. Employees may now set aside up to $230 per month to pay for expenses incurred traveling to and from work (previously the maximum contribution amount was $120). A transit pass is any pass, fare card, voucher, token or similar item entitling a person transportation (or transportation at a reduced price) (1) on mass transit facilities such as subway, train, bus; or (2) provided by any person in the business of transporting persons for compensation or hire in a highway vehicle with a seating capacity of at least six adults (excluding the driver). Also, the vehicle must be carrying at least one half of the adult seating capacity.

Transit Account Reimbursement Maximum
The maximum monthly reimbursement amount for transit expenses for the 2009 calendar year (effective March 1st) is $230. If you elect to contribute $230 a month and receive reimbursement for less than the contributed amount, remaining funds carryover to the next month. Participants can change their monthly contribution to compensate for carryover funds and changes in transportation arrangements (i.e., different fee schedule). All contribution changes must be submitted before the 1st of the month.

Parking Account
In addition to the Transit Account, employees can contribute up to $230 per month to pay for parking expenses on or near the employer’s business premises or at a location from which the employee commutes to work by car pool, commuter highway vehicle, mass transit facilities, transportation provided by any person in the business of transporting persons for compensation or hire, or by any other means. It does not include parking on or near property used by the employee for residential purposes.

Parking Account Reimbursement Maximum
The maximum monthly reimbursement amount for qualified parking expenses for the 2009 calendar year is $230. If you elect to contribute $230 a month and receive reimbursement for less than the monthly contributed amount, remaining funds carryover to the next month. Participants can change their monthly contribution to compensate for carryover funds and changes in parking arrangements (i.e., different fee schedule). All contribution changes must be submitted before the 1st of the month.

Ineligible Expenses:

Highway tolls, including EZ Pass

Traffic tickets

Fuel

Reimbursing a friend for driving to work

Parking at a friends or family including spouse’s place of work

Parking in a mall / shopping center

Taxis

Business Travel cost that are eligible for reimbursement by the employer

Mileage and other cost incurred while operating a vehicle

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What is an HRA? What is an FSA? What is an HSA? Benefit Cards What to Expect at the Doctor's Office What to Expect at the Pharmacy How do I file a claim? View My Accounts Your Responsibilities Eligible Expenses Dependent Care Plans Transit & Parking Plans Contact Member Services FAQs	Transit & Parking Plans What is a Qualified Transportation Benefit? The IRS allows plan sponsors to establish qualified transportation reimbursement programs. These reimbursement accounts allow individuals the ability to set aside funds on a pre-tax basis to pay for work related parking and transit expenses. Contributions are withheld pre-tax to avoid state, federal, and FICA taxes; an estimated 30% savings. There are two types of accounts, the Transit Account and the Parking Account. Transit Account Effective March 1, 2009 the American Recovery and Reinvestment Act increased the amount employees can set aside pre-tax to pay for qualified transit expenses. Employees may now set aside up to $230 per month to pay for expenses incurred traveling to and from work (previously the maximum contribution amount was $120). A transit pass is any pass, fare card, voucher, token or similar item entitling a person transportation (or transportation at a reduced price) (1) on mass transit facilities such as subway, train, bus; or (2) provided by any person in the business of transporting persons for compensation or hire in a highway vehicle with a seating capacity of at least six adults (excluding the driver). Also, the vehicle must be carrying at least one half of the adult seating capacity. Transit Account Reimbursement Maximum The maximum monthly reimbursement amount for transit expenses for the 2009 calendar year (effective March 1st) is $230. If you elect to contribute $230 a month and receive reimbursement for less than the contributed amount, remaining funds carryover to the next month. Participants can change their monthly contribution to compensate for carryover funds and changes in transportation arrangements (i.e., different fee schedule). All contribution changes must be submitted before the 1st of the month. Parking Account In addition to the Transit Account, employees can contribute up to $230 per month to pay for parking expenses on or near the employer’s business premises or at a location from which the employee commutes to work by car pool, commuter highway vehicle, mass transit facilities, transportation provided by any person in the business of transporting persons for compensation or hire, or by any other means. It does not include parking on or near property used by the employee for residential purposes. Parking Account Reimbursement Maximum The maximum monthly reimbursement amount for qualified parking expenses for the 2009 calendar year is $230. If you elect to contribute $230 a month and receive reimbursement for less than the monthly contributed amount, remaining funds carryover to the next month. Participants can change their monthly contribution to compensate for carryover funds and changes in parking arrangements (i.e., different fee schedule). All contribution changes must be submitted before the 1st of the month. Ineligible Expenses: Highway tolls, including EZ Pass Traffic tickets Fuel Reimbursing a friend for driving to work Parking at a friends or family including spouse’s place of work Parking in a mall / shopping center Taxis Business Travel cost that are eligible for reimbursement by the employer Mileage and other cost incurred while operating a vehicle


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