What is the Transportation Benefit Plan?
The Transportation Benefit Plan is a fringe benefit plan, which is authorized under the I.R.S. code Section 132. The Transportation Benefit Plan allows employees to pay for their transit passes, commuter costs and qualified parking costs on a before-tax basis.
What can we expect to save with this plan?
On average, the employee savings will be approximately 30% and employer savings 7.65% of the employee contributions for benefits.
Do we need a lot of employees in order to benefit?
Which employees are eligible for the plan?
All employees that you, the employer, declare eligible. If you allow part time employees to participate, you must allow all part time employees to participate.
What are the benefits of the Transportation Benefit Plan?
Employees can set aside costs for Parking and Transportation on a pretax basis. What this means is that LESS taxes are taken out of the employee’s paycheck. Less taxes means MORE MONEY in the employee’s paycheck.
Must all employees participate?
No. Only those employees who have transit/commuting or qualified parking expenses for which they would like to save on taxes should consider participation.
When can my plan begin?
As soon as you decide to begin saving for yourself and your employees.