Commuter Transit and Parking
Transit & Parking Benefits (Section 132 Plans)
Qualified Transportation Fringe Benefits allow employees (or employers) to pay for transit passes, commuter highway van pool expenses and qualified parking expenses with pre-tax dollars. Click here for current IRS monthly limits.
American Benefits Group offers all clients an ABG Benefits Card that allows employees to pay for eligible expenses at the point-of-service with no out-of-pocket cost, and virtually eliminates claim forms.
Participants use the card to pay for eligible commuter expenses and passes at valid locations, without having to wait for reimbursements!
The card is linked directly to their individual account, and participants have 24/7 access to view their account balance, claims status and account activity through our participant web interface.
One single integrated card works for your Flexible Spending Account, Health Reimbursement Arrangement, Health Savings Account and your Transportation Benefit Plan. Our sophisticated technology allows us to automatically direct claims in the correct benefit order to the appropriate account.
The Debit card is compliant with IRS rules and regulations, and all claims are adjudicated for eligibility. Through the WealthCare Portal, a customized, dedicated, secure web portal for employer and individual participant account access, employees can manage all aspects of the account from anywhere they have Internet access.
FAQs
Commuter benefits help you to pay for the public transportation, vanpool, or parking that you need to get to and from work with pre-tax money – money you deduct from your paycheck before you pay taxes. Vanpool applies to transit with more than five passengers and parking benefits must be used for parking at or near work, or at or near a place where you take public transportation to work (such as at a Park and Ride).
In most cases, you can sign up any time—the benefit will be effective for the first month possible after you make your election.
Use your ABG Benefits Card to purchase tickets, passes and prepaid cards. You may also submit claims for reimbursement for incurred parking expenses, no claims can be filed for transit expenses.
The amount of money you set aside to pay for your commute doesn’t count as income, so you’re not taxed on it. By having your commuting costs automatically deducted from your paycheck, you’re actually taking home more money and giving less to Uncle Sam. It’s something you’re going to pay for anyway, so not doing it is like saying “no thanks” to free money.
- Bus, ferry, train, trolley tickets and passes
- Parking expenses: meters, garages, lots
- Vanpool fees
- Tolls
- Taxis
- Gas/fuel
- Mileage
- Business trip costs
- Airport parking fees
- Parking fees at your home
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).
Participants are generally allowed to change their elections on a month-to-month basis to adjust for changes in their commuter needs.
This rule does NOT apply to Parking and Transit Benefits. As long as you are an active employee of your company, balances remaining in your account can be carried forward and used for future expenses.
Please be aware that Commuter Transit expenses can only be accessed using your ABG Benefits Card. If you pay out of pocket you can not be reimbursed. Please plan accordingly. Upon termination you ABG Benefits Card will be suspended and any remaining balance in your Commuter Transit account will be forfeited. Your Commuter Parking benefits allows for claim submission. Upon termination you have until your employer's run out deadline to submit your eligible parking claims.