A Section 132 Transit Benefit Plan can add an additional benefit for your commuting employees. Employees can elect a certain amount of “pre-tax” dollars deducted from their check to pay for qualified public transportation and parking expenses related to their employment.
|A Transit Benefit Plan can reimburse for:
||While a Qualified Parking Plan can reimburse for:
Unlike the more common Section 125 Flexible Spending program, a Section 132 Plan is a monthly election. So employees can change their pre-tax deductions anytime during the plan year, based on their current month’s expenses. If they do end up having money left over at the end of the year, those funds can roll over into the next year provided they stay enrolled in the plan.
And just like the Section 125 Plans, the Transit Benefit Plan is another Win-Win benefit that can save employer’s money on payroll taxes. Contact your ABS account information or our sales department if you would like to learn more.