Give your employees the green light on tax savings
Commuter Benefits enable employees to pay for certain workplace mass transit and parking expenses on a tax-free basis through payroll deductions up to the limits set by the IRS.
With a commuter account, employees set aside funds on a tax-free basis to pay for eligible workplace mass transit expenses, such as the price of tickets, vouchers, and passes to ride a subway, train, city bus, or vanpool.
Let’s face it, workplace models are not what they used to be. The introduction of telework and hybrid schedules have changed the game. Additionally, use of public transportation is on the rise as more and more people have chosen to sell their vehicles. Commuter Benefits help your employees make the most of the transportation and parking services available to them while reducing their taxable income.
Mass transit
Expenses for a bus, train, subway, or vanpool if the transportation is in connection with travel between an employee’s home and employer, up to the monthly IRS limit.
Parking
Expenses for eligible workspace parking expenses, parking costs at or near their primary work location, or parking costs at the place to access transportation to work, such as a train station or vanpool stop, up to the monthly IRS limit.
Rideshare apps
Commuter benefit funds can be used to pay for rideshare apps as long as the service is being used to be transported to or from work when riding in a vehicle that seats at least six adults, not including the driver. Simply add your HSA Bank-issued debit card to your payment options within the rideshare app and your funds can be deducted directly from your account.
How it works
Employees set aside funds on a tax-free basis to pay for eligible mass transit or parking expenses. Upon enrollment, an employee determines their monthly election amount (but this can be updated or stopped as employees' needs change throughout the plan year). And, since Commuter Benefits are not tied to a benefit year, the funds remain in the employee’s account until exhausted.
With a commuter account, employees decide how and where to spend their commuting dollars After registering the account, an employee can select and order bus or transit passes, transit authority smart cards, tickets, commuter checks, or reloadable commuter check cards to pay for their qualified commuting expenses.
For ongoing, commuter-related expenses, employees can set up a recurring order which automatically generates their transit order or pays their contracted parking vendor. (If the employee’s commuting needs change, they can adjust or discontinue.)
Employees can also pay their contracted parking vendor directly. If they use multiple parking lots or only park occasionally, they can still use the transportation services benefit. They would simply submit a claim for reimbursement, along with parking receipts or other documentation.
Why HSA Bank
HSA Bank helps you navigate Commuter Benefits administration
HSA Bank understands the intricacies and unique form Commuter Benefits Accounts may take based on state, mass transit options, and employee population. We seamlessly administer the benefits that matter most to so your employees can get where they need to be.
At HSA Bank, our commitment to you doesn’t begin and end with great products. That’s why we offer an array of services designed to complement these accounts, and foster success for you and your employees.
- Customized Program Design
- Dedicated Account Management
- 24/7 World-Class Call Center Support
- Easy Online Account Administration
- Enrollment and Eligibility Management
- On-Demand Employer Reporting
- Engagement Materials and Communications
Plan documentation
HSA Bank can facilitate the generation and maintenance of the written Plan Document and Summary Plan Description for Commuter plans. These documents are a crucial part of any benefit program offered by employer groups as they communicate the plan benefits and how each plan operates. All documents are stored electronically for later reference and include a date and time stamp of the original or any subsequent revisions.
Employer Resource Center
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