Transportation Benefit Plans
A fringe benefit plan, which is authorized under the I.R.S. code Section 132.
It is a tax reduction plan, not an insurance plan. The Transportation Benefit Plan allows employees to pay for their transit passes, commuter and qualified parking costs on a before-tax basis.
On average, the employee savings will be approximately 30% and employer savings 7.65% of the employee contributions for benefits.
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.
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.
No. Only those employees who have transit/commuting or qualified parking expenses for which they would like to save on taxes should consider participation.
As soon as you decide to begin saving for yourself and your employees.