In most cases, you can sign up any time—the benefit will be effective for the first month possible after you make your election.
The cost of commuting continues to rise and consumes a larger portion of an employee's income. With average commuter costs taking up as much as 15% of an employee's income, a commuter benefits program can help ease the pinch of commuting costs.
PLAN BASICS
Each year, the IRS determines the monthly amount of pre-tax payments for qualified transit and parking expenses. By participating in the Commuter Spending Account (CSA) plan, you are able to save both federal income tax and FICA (Social Security and Medicare) taxes on all contributions. Depending on your needs, there are two types of CSAs that could help you save. A CSA is an IRS regulated, employer-sponsored benefit plan that allows you to pay for eligible parking and transportation expenses with pre-tax money saving you as much as 40% on your commuter costs. When using mass transit or a van-pool service (the vehicle must seat six (6) adults excluding the driver), the CSA enables you to use pre-tax dollars to pay for items such as transit passes, tokens, vouchers or fare cards.
TRANSPORTATION SPENDING ACCOUNT
Used to pay for eligible mass transit or van-pool expenses associated with travel to and from work, including bus, train or subway.
PARKING SPENDING ACCOUNT
Used to pay for eligible parking expenses either at your place of employment or at a location where you use mass transit.
Take a look at our Commuter Spending Account flyer.
INTERESTED IN LEARNING MORE?
Give us a call at 1-855-890-7239 or email sales@nuesynergy.com.
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Commuter benefits are often overlooked but can offer many potential advantages for employees and can bolster an employer’s benefit package to make it more appealing for job applicants.
LEAWOOD, KS., (October 20, 2017) – The IRS has announced the 2018 contribution maximums for Flexible Spending Account (FSA) plans in the newly released Revenue Procedure 2017-58.