Section 132(f) Transportation Reimbursement Plan
Almost all urban employees commute to work by driving and then paying to park, or by using mass transportation. At Better Business Planning, we realize this can get expensive for your employees and we want to help.
Our transportation benefit programs can help you and your employees save money on the daily commute to work. It is a very effective method of saving taxes and also offers money-saving solutions to the daily commute. Our policies can help reduce costs for employees who use mass transportation or pay to park their cars at work.
As an employer, our transportation insurance does not require any cash contributions from you. It works by allowing employees to convert their after-tax payments for commuting expenses into pre-tax payments. By utilizing pre-tax dollars for commuting expenses, employees reduce their tax liability for federal income taxes, FICA taxes, and most state income taxes. There are tax benefits for the employer as well – with lower annual employment tax liabilities.
Commuter expenses covered
With an established commuter expense reimbursement and fulfillment plan, employees can typically be reimbursed for:
Transit passes and tokens
Qualified parking expenses
Transportation in a qualified commuter vehicle
Employees can fund the account with pre-tax contributions, which are exempt from federal income taxes, Social Security taxes and, in most cases, state income taxes. This results in an average tax savings of 30 percent on eligible expenses.
When you offer your employees transportation benefits from Better Business Planning it is a win-win situation for both you and your staff. Call us today, or use the form on this page to learn why you should offer transportation benefits to your employees!