Parking and Transportation Plans | Section 132

About

Qualified parking and transportation plans allow employees to use pre-tax dollars to pay for the costs associated with their commutes to work through an employer-sponsored program. While many parking and transit plans are the same, you must check with your employer for the specifics of your company’s plan.

Key Features

Key features include:

  • Employees elect to deduct funds pre-tax from their paychecks each month, pay-cycle, or quarter (up to a specified maximum).
  • There is a maximum amount that can be contributed and reimbursed per month. For a Parking account, the monthly maximum is $255 (for 2017), and for a Transit account, the monthly maximum is $255 (for 2017). An employer may decide to offer a lower benefit maximum if desired.
  • Employees submit claims (or use their 24HourFlex debit card) for reimbursement for parking, transit passes, and van pool commuting costs.
  • Employees can revoke their election at any time before the start of pay period, month, or other election period as specified by their employer.
  • Amounts not used in any period may be carried over to the following period.
  • Employees may only be reimbursed for expenses within the past 180 days (so you need to submit your expenses in a timely manner).
  • Employees may not be paid out more than they have in their accounts at any time.