Commuter Benefits

An employee may establish a spending account to reimburse predictable expenses incurred for out-of-pocket commuter and transit expenses. Once they determine their annual predictable expenses for the period of time covered by the Plan Year, a portion of that amount may be paid for with pre-tax pay, The elected pre-tax pay amount is then deposited on a per pay basis to the spending account. The maximum pretax deferral allowed for 2024 is $315 per month for the Commuter and Transit Spending Account.

Unlike the typical Flexible Spending Account(FSA), employees can change their election amount at any time during the Plan year. In addition, unused balances at the end of the year can be carried over to the next Plan year. However, any unused balance upon termination of employment could be forfeited.

Commuter Spending Account Reimbursement Process

Employees can use the debit card that we provide to them or complete a claim form and submit it along with their paid bills to the designated claims administration representative. Once the claim is received, it will be processed for reimbursement.

Employees can change their election amount at any time during the Plan Year. In addition, unused balances at the end of the year can be carried over to the next Plan Year. However, any unused balance upon termination of employment could be forfeited.

Qualified Commuting and Transit Expenses

Expenses, which may be included, are “Transit Passes”, which means any pass, token, fare card, voucher or any other item that entitles you to use mass transit for the purpose of traveling to and from work. “Commuter Highway Vehicle” Expenses may also be included but limited to highway vehicles with seating capacity for at least six adults (not including the driver) and at least 80 percent of the vehicle mileage must be for purposes of transporting employees in connection with travel between their residences and place of employment. And, expenses for trips during which the number of employees transported for such purposes is at least half of the adult seating capacity for such vehicle (not including the driver).

How Parking Spending Accounts Work

An employee may establish a spending account to reimburse predictable expenses incurred for qualified parking expenses. Once he or she has determined their annual predictable expenses for the period of time covered by the Plan Year, a portion of that amount may be paid for with pretax pay, deposited on a per pay basis to the spending account, which was elected. The maximum pretax deferral allowed for 2024 is $315 per month.

Unlike Flexible Spending Accounts, employees can change their election amount at any time during the Plan year. In addition, unused balances at the end of the year can be carried over to the next Plan year. However, any unused balance upon termination of employment could be forfeited.

Parking Account Reimbursement Process

Employees can use the debit card that we provide to them or complete a claim form and submit it along with their paid bills to The Harrison Group, Inc. Once the claim is received, it will be processed for reimbursement.

Employees can change their election amount at any time during the Plan Year. In addition, unused balances at the end of the year can be carried over to the next Plan Year. However, any unused balance upon termination of employment could be forfeited.

Qualified Commuting and Transit Expenses

Expenses that may be included are Parking Expenses which means parking lots for an employee on or near the business premises of the employer or on or near a location from which the employee commutes to work by mass transit, commuter highway vehicle, or by carpool. Such terms shall not include any parking on or near property used by the employee for residential purposes.

How The Harrison Group helps you with Section 132 Commuter Benefits Plans:

• Customer Service is our FOCUS – It is critical to select a Section 132 Commuter Benefits administrator who not only answers the phone but also assists employees when they have questions. We offer considerable resources to provide both onsite and online education for your employees.
• A Partner with Proven Expertise – With over 30 years of experience in the industry, our clients have come to rely on us to partner with them and their health insurance broker to provide the necessary education and benefits plan consultation.
• Concierge Customization – One size does not fit all.  We offer customized solutions to meet your specific objectives regardless of your size or demographics.
• Technological Advances – We offer the latest in industry-leading technology to our clients including a web and mobile application for accurate claims submission.  We also offer online education for employers and their employees.

If you have questions, please give us a call or contact us online.  We will be happy to assist you.

• Commuter Benefits Overview for Employees