Mass Transit and Parking Reimbursement Plan

 How These Plans Work
 Company Tax Savings Analysis
 Mass Transit and Parking Savings Calculator
 Employee Tax Savings Analysis
 Personal Tax Savings Calculator
 Eligible Mass Transit and Parking Expenses
 Plan details and how to get Started

Guaranteed tax savings for companies and employees.

Annually, employees participating in Transit and Parking Reimbursement Plans save an average of $400 per year and save the companies they work for $92.00 per employee.

How These Plans Work

Section 132 of the IRS code allows for a company to offer a Transit and Parking Reimbursement plan for employees commuting to and from work. The plan enables employees to pay for their commuting expense with pre-tax dollars. Specifically, employees do not pay FICA, Federal, State or local taxes on contributions made to the plan. The program was established to encourage employees to use Mass Transit by making it more affordable. Further, the plan is great money saver for employers because no FICA tax is paid on the amount of employee contributions.

Company Tax Savings Analysis

Assuming that a company has 50 employees and each employee pays $100 for Mass Transit every month and an additional $25 per month in work related Parking expense. Here's how much a company can save:

Average Monthly Pre-Tax Mass Transit	$ 5,000
Average Monthly Pre-Tax Parking	$ 1,250
Total Monthly Pre-Tax Dollars	$ 6,250
Monthly FICA Tax Savings	$ 479
Annual FICA Tax Savings	$5,748

To estimate what YOUR company can save please click here.

Employee Tax Savings Analysis

Assume an employee earns $45,000 per year and has monthly expenses of $100 for Mass Transit and $25 for work related Parking

Annual Transit and Parking Expense	$ 1,500
Estimated Tax Rate (FICA, FED, State & Local)	35%
Annual Tax Savings	$ 525

Eligible Mass Transit and Parking Expenses

 Transit Passes:

• A pass, token, fare card, voucher or similar item entitling a person to transportation on Mass Transit facilities or provided by a person who transports people for compensation or hire in a vehicle which seats at least six adults, excluding the driver.

 Qualified Parking:

• Parking provided on or near the employer's business premises or at a location from which the employee commutes by carpool, commuter highway vehicle, etc.

 Commuter Highway Vehicle:

• Transportation provided by an employer to an employee, in a vehicle which seats at least six adults (excluding the driver), in connection with travel between the employee's home and work, provided that 80% of the vehicle's mileage is reasonably expected to be for transporting employee from home to work or on trips where at least half of the adult seating capacity is filled by employees.

 Expense Limitations:

• Transit Passes
  • $230.00 per month for the calendar year 2010.
    
• Qualified Parking
  • $230.00 per month for the calendar year 2010.
• Commuter Highway Vehicle
  • $230.00 per month for the calendar year 2010.

Plan details and how to get Started

An employee enrolls in the plan and authorizes the payroll department to deduct Mass Transit and Parking expenses from their paycheck on a pre-tax basis. Once formally enrolled, an employee is mailed a BeneFlex Convenience Card. The money that the employee has put aside from their paycheck is deposited into the employee's BeneFlex Convenience Card Account. The participant uses their BeneFlex Convenience Card to purchase their Mass Transit passes and to pay for work related Parking expense. Hence, utilizing pre-tax funds to pay for Mass Transit and work related Parking expenses. Alternatively, an employee can pay for their Mass Transit and work related Parking expenses and then, complete and submit a claim form for reimbursement. The BeneFlex Convenience Card is accepted at all qualified Mass Transit, and Parking authorities. To learn more or, to sign up now click here