Save money on mass-transit and parking expenses with commuter accounts.
A commuter account is an employer-sponsored benefit program that allows an employee to set aside pre-tax funds in separate accounts to pay for qualified mass transit and parking expenses associated with your commute to work.
Mass Transit: Get reimbursed for transit passes, tokens, fare cards, vouchers, or similar items entitling you to ride a mass transit vehicle to or from work. The mass transit vehicle may be publicly or privately operated and includes bus, rail, or ferry.
Van-Pooling: Van-pooling is not to be confused with carpooling. Van-pooling requires a commuter highway vehicle with a seating capacity of at least 7 adults, including the driver. At least 80 percent of the vehicle mileage must be for transporting employees between their homes and workplace, with employees occupying at least one-half of the vehicle’s seats (not including the driver’s seat).
Parking: Get reimbursed for parking expenses incurred at or near your work location or a location from which you continue your commute to work by car pool, van pool or mass transit. Out-of-pocket parking fees for parking meters, garages and lots qualify. Parking at or near your home is not an eligible expense.
Put money back in your wallet by using tax-free dollars to pay for your commute by bus, rail, or ferry and any parking near these commuter stations or your workplace.
Contributions to a commuter account are free from Federal and State income tax, Social Security, and Medicare taxes and remain tax-free when it is reimbursed for eligible expenses.
Mass transit has always been eco-friendly and a great way to get some work done on your commute, but now there is a new reason to get excited about it.