Pre-tax transportation (S132(f)
Caroliso
352 Posts
We are about to institute this benefit where employees can set aside pre-tax dollars for qualified transportation and parking expenses.
Two questions we couldn't find answers to:
1) when does the unused balance get paid back to employees (same plan year or after plan year is over and is there a time frame) and does it get taxed?
2) Are plan documents or summary plan descriptions required for this benefit?
Okay, that's more like four questions but I'm hoping you'll overlook that flaw.
Thanks in advance.
Two questions we couldn't find answers to:
1) when does the unused balance get paid back to employees (same plan year or after plan year is over and is there a time frame) and does it get taxed?
2) Are plan documents or summary plan descriptions required for this benefit?
Okay, that's more like four questions but I'm hoping you'll overlook that flaw.
Thanks in advance.
Comments
Gotta' admit. This is a benefit that's new to me. What is a "qualified transportation and parking expense?"
Please don't make me go look it up!
Thanx.
It's a pre-tax benefit that operates like a cafeteria plan. employees can set aside money for the year on a pre-tax basis, and submit receipts for transportation (passes, tokesn, fare cards, vouchers, etc.) costs or parking costs in a facility near work or home. There's an annual max for each.