Commuter Benefits

Commuter Benefits
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.

 

Setting aside pre-tax dollars to helps cover commuting costs and helps you increase your actual take home pay. The following example illustrates these savings.

Commuter cost savings table

 

EMPLOYEE ELIGIBILITY

As with the Flexible Spending Accounts, eligibility in the Commuter Savings Accounts (CSA), generally only requires that you are an otherwise eligible employee of an employer that offers these accounts as part of their benefits program.

A unique feature of the CSA is that there is not an "annual enrollment period" for the program. Eligible employees may enroll in or make changes to their contributions at any time throughout the year.

As with the Flexible Spending Accounts, eligibility in the Commuter Savings Accounts (CSA), generally only requires that you are an otherwise eligible employee of an employer that offers these accounts as part of their benefits program.

A unique feature of the CSA is that there is not an "annual enrollment period" for the program. Eligible employees may enroll in or make changes to their contributions at any time throughout the year.

IRS-mandated contribution limits

 

Resources

FAQs

In most cases, you can sign up any time—the benefit will be effective for the first month possible after you make your election.

  • Tolls
  • Taxis
  • Gas/fuel
  • Mileage
  • Business trip costs
  • Airport parking fees
  • Parking fees at your home

Commuter benefits help you to pay for the public transportation, vanpool, or parking that you need to get to and from work with pre-tax money – money you deduct from your paycheck before you pay taxes. Vanpool applies to transit with more than five passengers and parking benefits must be used for parking at or near work, or at or near a place where you take public transportation to work (such as at a Park and Ride).

When you participate in a payroll deduction program through your employer, deductions can be taken from your payroll before calculating your taxable federal income, FICA (Social Security and Medicare) tax and for most states, taxable state income. By taking deductions pre-tax, you reduce the dollars on which you are taxed and, as a result, reduce your total tax bill.

You will receive an email indicating the reason for the denial along with instructions for submitting the requested documentation.

Blog

Breaking News

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.

Forms and Guides

Step by step instructions for setting up direct deposit online for claim reimbursement.

Step by step instructions on how to attach supporting documentation

This guide provides you with step by step instructions on how to submit a claim online.

Release form enabling you to designate individuals that you authorize NueSynergy to release information to related to your benefir account.

Employee status change form for qualifying event election changes.

Eligible Expenses

To see a complete Eligible Expenses Chart please go to the following link.

See All Eligible Expenses

eClaims Manager

Unlocking the benefit of claims integration for all participants in order to provide a better more convenient user experience.

See More on NueSynergy's eClaims Manager