Frequently Asked Questions
Commuter Benefits Program
General Information
Eligible Expenses
Deadlines
Benefit Elections--Transit
Benefit Elections--Parking
Benefit Elections--General
Reimbursement
General Information
What is the Commuter Benefits Program?
The Commuter Benefits Program is a qualified transportation benefit
program under Internal Revenue Code (IRC) § 132 which allows employees
to pay for certain employment-related transportation expenses on
a pre-tax basis.
What benefits are offered?
Mass Transit: The Commuter Benefits program provides employees
with the convenience of buying transit passes on-line and having
them automatically delivered every month directly to their homes.
Parking: Employees may elect to have their parking facility
paid directly every month, or may choose to establish an account
from which their parking expenses are reimbursed.
Van-Pool: Employees may elect to have their van-pool provider
paid directly every month, or establish an pre-tax account from
which their van-pool expenses may be reimbursed.
Who is Eligible?
All State employees, including limited term employees, (LTEs) can
participate in this pre-tax Commuter Benefits Program. Spouses and
dependent children are not eligible. Any employee who regularly
pays for mass transit, van-pool, or parking may take advantage of
this program. NOTE: If you already have your parking or vanpool
expenses deducted pre-tax from your paycheck, you do not need to
sign up for this benefit. You are already enjoying a tax-free benefit.
How do I enroll?
You may enroll on-line on the ETF internet site by clicking "Commuter
Benefits" found under the "members" tab, then clicking
on "Commuter
Benefits Enrollment/Change/Deletion". This will link you
to Fringe Benefit Management Company's web site where you will be
able to enroll, change, or delete your Commuter Benefits election.
Why should I use the Commuter Benefits
Program?
You will save money - up to a 40 percent tax savings on what you
spend on transit or parking up to the maximum pre-tax benefit limit.
And we make it EASY for you!
- Commuters get convenient home or office delivery of monthly
passes from transit providers.
- You can use the Commuter Benefits Program Direct Pay option
to make automatic payments to your parking provider.
- The costs for these services are automatically deducted from
your paycheck.
Who is responsible for administering
the program?
The Department of Employee Trust Funds (ETF) oversees the program.
A third-party administrator, Fringe Benefits Management Company
(FBMC), provides administrative services. FBMC is responsible for
on-line enrollment, order and delivery of your transit passes, paying
your parking facility or van-pool directly, and processing requests
for reimbursement of eligible expenses. Eligibility of expenses
is dictated by the IRS and FBMC uses those guidelines when reviewing
claims.
Is my information on the Commuter Benefits
Program system kept secure and private?
Yes. Fringe Benefits Management Company (FBMC), the program administrator,
maintains physical, electronic, and procedural safeguards for protecting
personal information. Access to personal information is restricted
to representatives who need to know the information to provide quality
service.
What are the dollar limits on tax-free
transit and parking benefits?
Federal law limits the amount of gross wages you may spend each
month on tax-free transit or parking. Effective March 1, 2009, the
limits are $230 per month for transit and/or vanpool, and $230 per
month for parking.
Can I combine the dollar limits from
month to month?
No. The specified limits for transit, parking and vanpool apply
individually to each calendar month.
Will participation in the Commuter
Benefits Program have an impact on my other benefits?
Participation in the Commuter Benefits Program will have no impact
on the gross amount of earnings used to calculate retirement, life
insurance, income continuation insurance, sick leave conversion
credits, unemployment or Worker's Compensation.
The plan will reduce salary used for calculating social security
benefits at retirement. Your Commuter Benefits Program contribution
will reduce the includable compensation used to compute the maximum
amount deferred under a tax shelter annuity or deferred compensation
plan.
Will I need to fill out any special
tax forms to get my savings?
No. You will simply notice an increase in the amount of your
spendable income since you save the tax money you normally spend
on your commuting expenses.
Eligible Expenses
What commuting expenses are eligible?
Only actual amounts spent by you for the purpose of commuting to
and from work are eligible and there are limits on the amount you
can claim. Two types of commuting expenses are eligible under Federal
law:
- Mass transit fares, including tickets, passes,
tokens, vouchers or other fares for riding buses, trains, paratransit
vans or other mass transportation vehicles. They also include
the cost of participating in an official vanpool. The cost
of commuting in a taxi or in your personal car or van is not included.
- Parking fees at or near your work place or
parking at a location from which you commute to your work place
via mass transportation or a carpool (such as a park-and-ride
lot). Residential parking is not eligible.
Only parking and mass transit costs incurred by you in connection
with travel between your residence and your work place are eligible.
What expenses are not eligible?
Only expenses for your workplace parking and mass transit are eligible
on a pre-tax basis. Commuting expenses you cannot claim under the
program include but are not limited to the following examples:
- Tolls
- Traffic tickets
- Fuel
- Mileage or other costs you incur in operating a vehicle
- Taxis
- Payments to a fellow participant in a carpool or to a friend
who drives you to work
- Expenses incurred for parking at your spouse's place of work
- Parking at a mall or similar location where you stop on your
drive to or from your place of work
- Costs that have been or will be paid by your employer, such
as for a business trip.
I ride in a car pool with my neighbor.
Can I take advantage of this program?
Only the Commuter Benefits Program participant who actually pays
for the parking space may have the cost deducted from his or her
paycheck on a pre-tax basis.
Is my vanpool eligible?
Under Federal law, arrangements where you and other commuters share
the cost of renting a van for commuting to work are eligible for
tax-free transit benefits. A van that you or one of the other
riders owns or operates as your personal vehicle is not a vanpool. Also,
the van must be primarily used for commuting, must have a seating
capacity of at least six adults including the driver and must typically
be at least half full.
I get free parking at work. Can
I still use the Commuter Benefits Program?
You can't use the Commuter Benefits Program for the free parking
provided at work. If you take transit instead, you may use the Commuter
Benefits Program to buy transit passes.
Deadlines
What is the deadline to sign up, change
or cancel my benefits?
The deadline for ordering transit and parking passes through the
Commuter Benefits Program on-line is the 10th of the
month to receive benefits on the first of the following benefit
month. Tax rules require that you elect your benefit amount before
the period of coverage begins. The deadline for electing your out-of-pocket
expenses will be the 10th of each month prior to the month that
you will use the benefit. If you miss the 10th of the
month deadline, you will not receive your pass by the first of the
following month. For example, if you enroll on September 12, you
will not receive your pass until November 1.
If I sign up now, can I make changes
later?
Yes. You can change or discontinue your participation in the Commuter
Benefits Program later.
If I don't sign up now, can I do so
later?
Yes. The Commuter Benefits Program is a monthly program. You may
make an election every month. Remember that you must enroll by the
10th of the month in order to receive your transit passes
or have your parking provider paid
by the first of the following benefit month.
I missed the deadline for next month. What
do I do?
Unfortunately, the deadline for signing up, changing or canceling
benefits for any given month can not be altered. Be sure to contact
FBMC immediately when you know that your parking or transit needs
may be changing. All changes must be made by the 10th
of the month. Any benefits processed after the 10th
of the month may not be refunded.
Benefit Elections--Transit
Why can't I just get a cash reimbursement,
instead of ordering my transit passes on-line?
Government regulations prevent us from allowing cash reimbursement
when a transit pass is readily available for purchase from the Commuter
Benefits Program site. You can be reimbursed for transit passes
if:
- The transit pass is not available through the Commuter Benefits
Program.
- The transit pass is not available through the Commuter Benefits
Program in the denomination that you purchase from the transit
agency.
- You purchased your pass through the Commuter Benefits Program
and had two occasions when the pass was not delivered.
We monitor reimbursement claims and may deny your claim if the
pass is available on the Commuter Benefits Program Internet site.
Can I sign up to get my transit pass
automatically without having to come back to the Commuter Benefits
Program every month?
Yes. By selecting "Every Month" when you configure your
transit selection, you will automatically receive your transit pass
and you will not need to come back to the Commuter Benefits Program
unless you wish to make a change to the monthly frequency or to
the type of pass.
I pay for parking at my park and
ride lot, but pay for a bus pass separately. How do I use pre-tax
dollars for both parking and transit?
You can use pre-tax dollars for parking and for transit by electing
each commuter benefit separately. The bus fare would count toward
the monthly transit limit; the parking fee would count toward the
parking limit.
My transit plans can change from
month to month. How accurate do I have to be when I predict my next
month's expense?
If you are unsure about the total expense, you may wish to under-estimate
how much to have withheld from your paycheck. Remember, the monthly
pre-tax limits when making your benefit election.
Benefit Elections--Parking
What is the Direct Pay option for
parking?
The Commuter Benefits Program will automatically pay your designated
parking provider on a monthly basis using your pre-tax dollars.
Because your provider is paid directly, you do not need to submit
paper receipts for reimbursement.
Eligible parking is the cost of parking at or near your place of
work, or at or near a place from which you commute to work via mass
transit, such as a park-and-ride lot. However, the cost of parking
at your place of residence is not included under any circumstances.
When will my parking provider be paid
under the Direct Pay option?
Any payment instruction that you create by the 10th of each month
is sent to your parking provider so that it arrives before the 1st
of the subsequent month. For example, if on June 8th you instruct
the Commuter Benefits Program to pay $100 to Ed's Garage, Ed's Garage
will receive payment in time to post it to your account before July
1st.
Can I schedule payments to occur
at some other time during the month?
No.
I pay for my parking every day or
every week. Can I use the Direct Pay option?
Direct Pay can be used to make payments once a month. You cannot
schedule daily or weekly payments. If you can convert your parking
fees into a monthly payment, you can use Direct Pay. Otherwise,
use the Pay Me Back feature from the Parking menu to be reimbursed
for your daily or weekly out-of-pocket expenses.
Benefit Elections--General
What happens to my transit pass order
or parking payment if I leave State service?
Be sure to contact FBMC immediately when you know that your parking
or transit needs may be changing. All changes must be made before
the 10th of the month. Any benefits processed
after the 10th of the month may not be refunded.
What if the transit or parking I use
isn't available through the Commuter Benefits program system?
Not all transit and parking providers are in the Commuter Benefits
Program online catalog, but you can still enjoy tax savings on parking
or transit items if you report them as out-of-pocket expenses. For
parking expenses, simply enroll in the "Pay Me Back" option
to have your expenses reimbursed directly to you. For transit expenses,
click on the link "Click here to enroll in Transit Cash Reimbursement"
found at the bottom of the "Transit Order" page and click
continue. You may then enter your usual monthly out-of-pocket expenditure
for transit.
My monthly commuting costs vary. How
much should I enter for my monthly expense?
You should enter your usual expense in an ordinary month, ignoring
special circumstances like sick days, short vacations and occasional
overtime.
What happens to my Pay Me Back election
if I do not use all the money deposited into my commuter benefit
account for the current month?
There is no "use it or lose it" rule. Excess balances
will be carried over to the subsequent month. You will have the
ability to adjust future monthly Commuter Benefit elections to avoid
having an excess balance.
Reimbursement
If I buy my transit pass or have my
parking facility paid directly through the Commuter Benefits Program,
do I need to submit a receipt?
No. You only need to submit receipts if your transit or parking
is not yet available for purchase through the Commuter Benefits
Program catalog or Commuter Benefits Program DirectPay and you instead
report your out-of-pocket expenses.
With the Pay Me Back option how do
I get reimbursed for my daily parking or transit expenses?
Submit your receipts for the month and a reimbursement claim form
to FBMC. You may include both parking and transit expenses on the
same reimbursement claim form. Please allow 10-15 days to receive
your reimbursement check.
What kind of supporting documents
need to be submitted so that I can be reimbursed?
An expense receipt from the parking facility or transit provider
that shows: the name of the vendor, the date(s) the service was
provided and the cost for the service must be provided with the
claim. When proof that an eligible expense has occurred is not available,
you must sign and submit a statement indicating the expense incurred.
Canceled checks are acceptable as supporting documentation.
You can also create an electronic receipt on the Commuter Benefits
site. Click the "Submit Receipts" button then click on
the "eReceipt" button on the right side of the page following
the instructions. If you use the "eReceipt" option you
do not have to send a claim form.
I have the same out-of-pocket expense
every month. Do I still need to submit receipts?
Yes. Commuter Benefits will withhold your out-of-pocket expense
automatically from your paycheck if you click "Every Month,"
for your account, but you still need to submit receipts. Your commuting
expenses will not be reimbursed until the Commuter Benefits Program
has received your receipts.
My provider doesn't give receipts
or ticket stubs. What should I do?
We understand that some transit and parking providers don't provide
receipts. In some cases, no other form of paper documentation exists.
No problem. You can submit an eReceipt online to certify your expense.
You will not need to submit an envelope with the eReceipt function.
Select "Reimburse Me" and click on your expense link to
access the eReceipt option.
What happens if I don't submit receipts
or other documentation?
Your commute expenses will not be reimbursed until you submit your
receipts.
Where do I get more of the Commuter
Benefits Program reimbursement request forms?
Reimbursement forms will be available on the
ETF Web site or call FBMC Customer Service to request forms
by mail.
|
