How does the program work?
A qualified transportation fringe benefits program, also known as a Commuter Benefits program, works like other pre-tax plans such as dependent care and medical reimbursement, except it's much simpler. Commuter Benefits are exempt from the usual restrictions and reporting requirements that accompany other pre-tax programs allowed by the IRS. There are no plan filings or forms for the employer to fill out, no irrevocable elections and no mandatory enrollment dates. Commuter Benefits are not subject to the regulations governing cafeteria plans and cannot be offered as part of one, although the program can be offered in tandem with a cafeteria plan.

Employers can offer Commuter Benefits as a payroll deduction, a subsidized benefit, or a combination of the two.

Show All Answers

1. How will I save?
2. How can I take advantage of the bicycling tax benefit?
3. How do I get my employer to sign up?
4. How does the program work?
5. How much do employers and employees save?
6. Why would an employer offer a Commuter Benefits program?
7. Who can participate? Are any employers too large or too small for the program?
8. Do employers need to keep detailed records?