A commuter benefit is a spending account that allows employees to put aside pre-tax dollars to pay for work related commuting and parking expenses. Only Employees can enroll in this benefits.
Commuter/Transit benefit set up includes following sections:
- Policy Info (Standard - Same as other plan set up.)
- Eligibility (Standard - Same as other plan set up except there is no age related eligibility options)
- Contributions
- Additional Settings (Standard - Same as other plan set up.)
- Resources (Standard - Same as other plan set up.)
Contributions set up for Commuter benefits consist of 2 things:
- IRS Max information for the current year - this message is for information purpose only.
- Employer and Employee contributions setup.
If the employer is contributing, toggle Employer Contributes button to Yes and provide employer’s flat monthly contribution amount.
Check which type of commuter benefit employers wants to provide. Check at least one check box or select both checkboxes to set up both types of benefits.
Once checkbox is selected, define minimum and maximum MONTHLY amount employees can contribute to enroll.
NOTE:
- Employer monthly contribution + Employee max contribution, can not exceed IRS max amount.
- Employer and Employees can contribute a $-flat dollar amount only.
- Leave employee’s minimum contribution amount to $0 if employee can enroll without contributing but employer contributes to the plan.
- Employee will have an option during enrollment, to allocate Employer’s contributions (if any) to the Parking or Transit benefits.