How it works
- Employees must authorize you to deduct a pretax amount for parking or vanpooling/transit from each paycheck, up to a monthly limit set by the IRS.
- They pay for qualified transportation costs with a benefits debit card, or pay out of pocket and file a claim for reimbursement.
- Money left in the account carries over if the employee continues to participate in the plan.
- Employees should keep receipts and make sure they have the merchant name, date, amount of expense and a description of the purchase. If they don’t get a receipt, a signed claim form showing the amount of the expense they incurred for that time period will be accepted.
You can even offer Commuter benefits with a flexible spending account!
As long as you have one of our health plans, you can offer the Act Wise FSA with your Commuter benefits.Check out the FSA
What are the benefits of the commuter plan?
Reduces payroll taxes
The more employees who sign up for the benefits, the more you can save.*
Helps attract and keep employees
You can help employees lower their monthly expenses by using their pretax dollars on commuting costs.
* NYC Department of Consumer Affairs website: Commuter Benefits Law FAQs (February 22, 2017): https://www1.nyc.gov/site/dca/about/commuter-benefits-FAQs.page.