What are commuter benefits?
The benefits can be managed in one of three ways:
- Employers pay for an employee’s transit, vanpool, or parking expenses. In return, the employer receives a tax deduction for the amount up to the monthly limit for each commuter.
- Employees pay for their commuter expenses with pre-tax income deducted from their paychecks. ...
- The employer and employee share the costs by combining options one and two.
What happens to unused commuter benefits?
IRS defines qualified transportation fringe benefits to include:
- transportation in a commuter highway vehicle between the employee’s residence and place of employment
- any transit pass, and
- qualified parking.
Are commuter benefits taxable?
Commuter benefits are considered tax-free benefits, not employee wages, so your company can save on average 7.65% in payroll taxes. Employees who participate in your commuter benefit program don’t have to pay income taxes on the money they set aside for their commute, saving up to a whopping 40% on their commuting expenses.
What is an eligible commuter benefits expense?
- Mass transit facilities, such as train, bus, or subway stations
- Commuter highway vehicles
- Vanpools
What are qualified commuting expenses?
Commuting expenses are costs that are incurred as a result of the taxpayer's regular means of getting back and forth to his or her place of employment. Commuting expenses can include car expenses, biking expenses, and public transportation costs. These costs are not tax-deductible in the U.S.
Can commuter benefits be used for FasTrak?
The multibridge commuter discount is a benefit for Bay Area FasTrak customers who cross multiple state-owned bridges within one day. State-owned bridges include Antioch, Benicia-Martinez, Carquinez, Dumbarton, Richmond-San Rafael, San Francisco-Oakland Bay and San Mateo-Hayward Bridges.
What can I use commuter FSA for?
Governed under Section 132 of the tax code, eligible commuter expenses include public transportation used for your transit to work and many parking expenses....Eligible Transit Expenses:Buses.Trains & subways.Ferries.Vanpools.Commuter highway vehicles.Car Service Apps — uberPOOL and Lyft Line.
Can commuter FSA be used for gas?
You can't use commuter benefits funds to pay for fuel, mileage, or other costs related to your personal vehicle.
Is toll cheaper with FasTrak?
Drivers using a FasTrak CAV toll tag will receive a 50% discount on their toll. If you are driving alone in the express lane using a standard FasTrak toll tag or FasTrak Flex toll tag, you will be charged the full toll, even if you are in a qualified CAV.
Does EZ Pass work in California?
E-ZPass does not work in California and the reason could be that they are yet to partner with each other. However, there are other forms of electronic toll collection systems available for you in California, but you can choose FasTrak. It is the best-known and acceptable toll collection platform in California.
Can I use my FSA for Uber?
you can't use your FSA debit card to pay for your transportation expenses. Instead, you have to submit a claim for reimbursement to your FSA administrator. Many expenses related to common modes of transportation—Uber, Lyft, planes, cars, ferries, taxis, rental cars, buses and more—can be FSA-eligible.
Is parking FSA eligible?
Parking fees – You can use your FSA/HSA to pay for parking at a hospital, doctor's office, or a nearby parking garage while receiving treatment. You cannot claim parking costs if you stop for personal reasons (e.g., a meal or shopping) on your way to or from your appointment.
Can you transfer FSA to bank account?
No, you can use funds only for the purpose for which the election was initially made. IRS regulations do not allow funds to be transferred or commingled between accounts. So, the money in your Health Care FSA may only be used for health care expenses and your Dependent Care FSA may only pay for dependent care expenses.
Can I use HSA for Uber?
You can use your FSA or HSA to pay for qualified travel costs associated with a dependent's care. Some common eligible travel expenses include: Rideshare apps, public transportation, taxis, trains, ferries, and rental cars. Tolls, if a toll route is the only way to get to the facility.
Is transit FSA use it or lose it?
The pre-tax transit or vanpool benefit is not a "use it or lose it" benefit. It is intended to be deducted and used each month. However, since employers capture the payroll deductions upfront, the employee uses the deductions on a rolling basis.
How to submit a claim for commuter benefits?
To submit a claim, follow these steps: Click on the Commuter Benefits app on your dashboard. Click on the Claims tab at the top of the page. Click on the Submit a Claim button.
How many people can be in a commuter vehicle?
A commuter highway vehicle is any highway vehicle with a seating capacity of at least six adults , not including the driver.
What are eligible parking expenses?
Eligible parking expenses include: Parking Meters. Parking fees for parking on or near locations used to commute to work including: Mass transit facilities, such as train, bus, or subway stations. Commuter highway vehicles. Vanpools.
Can you use Zenefits card to pay for parking?
When you try to use your Zenefits Card to pay for parking at Caltrain, the Zenefits Card system can't correctly tell which type of purchase you're making and may either decline the transaction, or incorrectly debit your transit funds instead of parking funds. If you want to use Commuter Benefits to pay for parking at Caltrain, ...
Can commuter benefits be used for travel?
Commuter benefits should only be used for travel between home and work . You can't use commuter benefits funds to pay for expenses related to traveling from your office to another business or client meetings.
Can I use commuter benefits to take a taxi?
Sorry! You can't use commuter benefits funds to take a taxi.
Can you use UberPool with a prepaid transit card?
When you use your prepaid transit commuter benefits card, you can save up to 40 % on rides pre-tax . Users cannot submit claims for UberPool or Lyft Line rides - can only use the card. That’s the only way for Lyft , Uber and Zenefits to verify that users are dispatched a compliant vehicle.
Is parking included in mass transit?
No. Only qualified workplace mass transit and parking expenses are eligible. Costs to maintain or use your personal vehicle are not included. In order to qualify as an eligible mass transit expense, a commuter highway vehicle must seat at least 6 adults and be primarily used for transporting employees between home and work.
Can Uberpool be used with commuter benefits?
Note: Not all uberPOOL and Shared Rides services are eligible for use with a commuter benefits program. Please verify eligibility of services in your area by linking your benefits card as your payment source. Then select your beginning and ending destination. The app will indicate if eligible services are available.
What is commuter benefit?
A commuter benefits program is a program that certain employers can offer under the provisions of Internal Revenue Code Section 132 (f) to their full-time employees to use pre-tax income to cover certain transportation costs.
How does a commuter benefit work?
A commuter benefits program can provide savings for both employers and employees. Employers can save by reducing their payroll taxes. The more employees who sign up for transportation benefits, the more the employer can save. Employers can also attract and retain employees by offering transportation benefits.
When did NYC start offering commuter benefits?
Employers had a six-month grace period after NYC’s Commuter Benefits Law took effect on January 1, 2016 to begin offering commuter benefits to their employees. As of July 1, 2016, DCA is authorized to seek penalties for failure to comply with the law.
When did NYC start a commuter program?
NYC’s Commuter Benefits Law took effect on January 1, 2016. Under the law, for-profit and nonprofit employers with 20 or more full-time non-union employees in New York City must offer their full-time employees the opportunity to use pre-tax income to purchase qualified transportation fringe benefits. The law is based on the Internal Revenue Code that authorizes pre-tax commuter programs, which benefit employers and employees.
What is temporary help?
A temporary help firm is a firm that recruits, hires, and supplies employees to perform work or services for another organization. A temporary help firm that supplies a full-time employee to another organization is the employer of the full-time employee for purposes of the law.
What is Temporary Help in New York?
Temporary help firms that employ 20 or more full-time employees who are placed in New York City are required to offer those employees the opportunity to use pre-tax income to purchase qualified transportation fringe benefits, other than parking.
Does the CBA apply to commuter benefits?
The law does not apply to: Employers whose employees are covered by a collective bargaining agreement (CBA). Exception: If the employer has 20 or more full-time employees who are not covered by the CBA, the employer must offer these employees commuter benefits.
What are Commuter Benefits?
Commuter benefits give employees the opportunity to use tax-free dollars on commuting costs and keep more of what they earn in their paycheck. Companies that offer commuter benefits also save money by reducing payroll taxes. Watch this video and see how your company and employees can take advantage of huge savings.
Current Commuting Solutions
Public Transit includes bus, train, subway and ferry services. We offer many options to pay for public transit such as our prepaid card, smart cards and transit passes.
Payment Methods
Our prepaid card can be used to pay for public transit, parking, Uber/Lyft, bike share, and e-scooter sharing. It’s fully integrated into your commuter benefits account.
Employer Calculator
Employers save an average of $40 per month for each participating employee. If 50 employees participate over 12 months,
How many separate payroll deductions are there for mass transit?
fund them separately (your paycheck will show two separate payroll deductions- one for Mass Transit and one for Parking)
What is an eligible expense?
An “eligible expense” can be defined as an item or service (such as a monthly pass for a train or bus) purchased from a qualified transit vendor (like Grand Central Station.) An expense purchased from a third party vendor is not eligible and cannot be purchased with funds from your Mass Transit Account (e.g. purchasing a bus pass from Walgreens.)
What is transit FSA?
Utilizing a transit FSA is generally an optional benefit which employees can elect to participate in. When they do opt in, a specific estimated amount is deducted from each paycheck before taxes to be used to cover parking and transportation expenses related to work.
What is transportation spending account?
A transportation spending account allows an employee to use pre-tax funds for work-related commuting, which can also include parking costs. It’s important to note that this benefit is typically only available to the employee, not his or her dependents and that it consists of two related but separate benefits: parking and transportation costs.
What are parking expenses?
Parking expenses incurred at a location where you park to commute to work by mass transit. Carpooling in a commuter highway vehicle. Vendor parking lots. Vendor parking garages. These transportation expenses are also usually included: Bus transportation.
What to do before offering TSA benefits?
Before you begin offering TSA benefits to your employees it’s important to think through exactly what your plan will cover and how you’ll clearly communicate that to the people that work for you. While there is some wiggle room, there are some strict federal tax laws that have to be followed no matter what, so it’s important for you to read up on those first so you don’t end up in any unexpected tax trouble along the way.
How many people are in a vanpool?
Vanpooling: the transportation between an employee’s home and work in a vehicle that seats at least six adults in addition to the driver and a minimum of 80% of the vehicle’s mileage is for commuting
Is FSA transportation covered by TSA?
The trickiest part of offering FSAs for transportation is communicating to your employees what is and isn’t covered by their FSA plan. Each plan is different but in general, the following parking expenses are covered by TSA accounts: Parking expenses incurred at work.
