A Commuter Transit Account is a pre-tax benefit account used to pay for public transit—including train, subway, bus, ferry or vanpool—as part of your daily commute to and from work. It’s important to note that this benefit is typically only available to the employee, not his or her dependents and that it consists of two related but separate benefits: parking and transportation costs. Health Care; Dependent Care; Qualified Commuter Expense. A Section 132 Transit Benefit Plan can add an additional benefit for your commuting employees. Commuter Benefits can help offset these costs through transit benefits for employees offering tax-free options for mass transit and parking reimbursement administration. You may also pay out of pocket and then submit a reimbursement request to Discovery Benefits. By contrast, mass transit, parking and HSA limits will be updated automatically for elections intended on or after January 1, 2020. Employees can elect a certain amount of "pre-tax" dollars Flexible Spending Account Administrators (FSA plans) | ABS, Inc. Parking: $255/year; due to the merchant category transaction IDs of supermarkets, drugstores or pharmacies. Why should I participate in the Commuter FSA? Commuter reimbursement accounts (CRA) allow you to set aside pre-tax dollars to put towards eligible transportation and parking expenses. This program allows you to pay for certain work related commuting expenses with tax-free dollars. A transportation spending account allows an employee to use pre-tax funds for work-related commuting, which can also include parking costs. In an ideal world, you’ll avoid losing income by using up all your funds for eligible medical expenses by deadline.

A Flexible Spending Account (FSA) is a tax-advantaged financial account that can be set up through your employer's cafeteria plan. For 2020, the monthly exclusion for qualified parking is $270 and the monthly exclusion for commuter highway vehicle transportation and transit passes is $270. What is a Transportation Flexible Spending Account? WageWorks, Inc. handles the FSA plans for the NJDPB. By using pre-tax dollars to pay for health care and dependent care expenses, an FSA gives the employee an immediate discount on these expenses equal to the taxes otherwise paid on that money. Flexible Spending Account Types. The Qualified Commuter Expense Reimbursement Account is similar to the pre-tax health care and dependent day care spending accounts. Types of Accounts The Qualified Commuter Expense Reimbursement Account consists of two types of accounts: the qualified parking expense account … Employees can set aside up to $270 per month for parking expenses and another $270 per month combined for mass transit and vanpooling. Commuter Spending Account Cost Savings for Commuters Commuter spending accounts (CSAs) are similar to flexible spending accounts in that they deduct money from the employee’s paycheck before it is taxed and put it in an account to use for a specific type of expense, in this case parking or mass transit for work commutes.

Enjoy tax savings on recurring eligible transit expenses through the power of Commuter Benefits. The funds are deducted from the employee’s paycheck on a pre-tax basis, reducing the employee’s taxable income. 2. Employers’ Commuter Benefits Programs — referred to by some as commuter FSAs or transit FSAs — give employees the ability to use pre-tax funds for work-related transit and parking expenses. In making contribution limit decisions, the IRS annually takes into account cost of living increases due to inflation. It allows you to set aside pre-tax money and spend it on eligible medical expenses.. For 2018, you can contribute up to $2,650 to your health FSAs, up from the 2017’s limit of $2,600.. If you use mass transit for work and you are enrolled in a pre-tax Commuter Benefits Plan (CBP) through your place of employment, you’ll want to be aware of what you can (and can’t) purchase with your CBP funds.. For those of who you are new to CBPs, check out the starter FAQs below. You must enroll in a Flexible Spending Account (FSA) each plan year in order to participate. 8. These tax-advantaged accounts can help you save up to 30% on your everyday commuting expenses . Parking or Mass Transit; Flexible spending accounts are intended to be used for predictable expenses only. It’s a great way to put extra money in your pocket each … Commuter Flexible Spending Account (FSA) FAQ – Employees Applies to U.S. Chemours benefits-eligible employees decline at non-transit authorities (e.g. The Flexible Spending Account (FSA) ... Commuter Transit Account. Walgreens, Albertsons, Safeway, Shoprite etc.) How many debit cards will I receive with my Commuter Plan? Qualified parking exclusion and commuter transportation benefit. Commuter Flexible Spending Account (FSA) Simple Access to Your Funds With the Discovery Visa debit card, you can pay participating providers at the time of service directly from your transit and/or parking account.