Parking & Mass Transit Accounts

By adding a Parking/Transit Plan to your benefit package, your employees will receive an additional pre-taxed benefit allowing for an increase in their take home pay.

The Plan allows the employees to deduct pre-taxed work related parking and mass transportation costs, which decrease their gross income. In turn this decreases the amount paid in taxes. This Plan reduces federal, state and FICA taxes. Participants can save approximately $0.25 on every dollar deducted pre-taxed through the Plan (15% federal + 2% state + 7.65% FICA). For those in a higher federal tax bracket, or have higher State income taxes, the savings increase.

Benefit To Employers

• Added bonus to the employees
• Attractive benefit for recruiting employees
• The Employer savings on FICA taxes

Participation

All eligible employees can participate. The employer does have the right to limit participation to certain categories of employees if necessary. The Plan does not require any non-discrimination tests.

There are individuals who may not participate in the Plan: self-employed individuals, partners in a partnership, 2% or more shareholders in a Sub-Chapter S corporation, outside directors, limited partners and limited liability company members.

Reimbursement

The amount submitted cannot exceed the monthly indexed amounts allowed. For example, an employee signs up for $230.00 per month for parking. If the employee incurs $250.00 in parking expenses for one month, the amount reimbursable is $230.00 (maximum amount per month).

Deduction Changes

Employees can make changes at any time, although the Employer has the right to limit the number of changes to reduce administration. To make a change, a new election form would need to be completed by the employee and submitted to the Payroll or Human Resources Department.

Termination of Employment

Upon termination the employee will have a run-out period to file claims on the unused balance in their account. Any unused funds after the run-out period has past will be returned to the Employer. These funds are non-refundable to the participant and should be used to offset the cost of the Plan.

Plan Setup

Plan set up is fast and so easy. Contact us to start your plan today. CBI® can provide a summary of the plan for easy communication, along with enrollment forms. The forms are given to the employees, elections are made and returned to human resources, payroll sets up two new deduction codes (one for parking and one for transit expenses) and funds are deposited in to a company account. Claims may be filed after the first payroll deduction has occurred.

On-Going Administration

The Employer is responsible for reporting new elections, change in elections, termination dates and depositing employees' pre-tax dollars into their company account in order to have accurate administration from CBI®.

Employee Account Information

All participants can view their account information in their personal file on the web.

Employer Reporting

The Employer will be receive monthly reports on disbursements and deposits.

Balance Rollovers

As long as the participant is an active employee, any unused funds will continue to roll over month-to-month, year-to-year. Claims may be incurred regardless of the participants deductions are active or stopped, providing the employee status remains active.