What is a Qualified Transportation Plan?
Qualified Transportation Plans allow an employee to set aside funds to be used for pre-tax reimbursement for certain "Qualified" transportation and commuter parking expenses to travel to and from work. This benefit may only be used by the employee. Eligible participants include employees that have to pay for parking where they work and/or transit commuters, whether they travel by bus, train, boat or vanpool.
Qualified Transportation Plans have two accounts:
- Qualified Parking: Parking provided to an employee at or near the employer's business premises. This also includes parking at or near a location from which the employee commutes to work by mass transit, vanpooling, in a commuter highway vehicle, or by carpool. Parking at or near the employee's home doesn't qualify.
- Transit Passes & Vanpooling Expenses: Any pass, token, fare card, voucher, or similar item entitling a person to transportation on a mass transit facility or in a highway vehicle eligible for use in vanpooling. (Vanpooling is defined as transportation to and from an employee's residence in a "commuter highway vehicle" that seats at least six adults plus the driver and at least 80 percent of the vehicle’s mileage for the year is for transporting employees in connection with travel between their residences and their place of employment).
Last update on May, 11 2018 by Administrator.