Parking and Transportation Plans | Section 132
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 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 (as of January 1, 2016), and for a Transit account, the monthly maximum is $255 (as of January 1, 2016). 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