KCI FINANCIAL SERVICES, INC.
"Celebrating our 28th Year"
Commuter/Transit Reimbursement


In 1998, the IRS passed regulations under IRC 132 that allows employers to sponsor a
pre-tax benefit for commuter benefits. Under this program, employees can set aside
funds through payroll deduction to pay for work-related transportation and/or parking
expenses. This program works similarly to an FSA Plan. Employees' taxable income is
reduced by the amount they choose to deduct for “qualified transportation expenses.”


Types of Allowable Expenses

Mass Transit/Vanpool

If employees commute to work via mass transit (i.e. public transportation including bus,
train or rail systems) or by vanpool, employees can use pre-tax dollars to pay for those
mass transit costs related to their commute, up to the current IRS limit.

Parking

Employees who commute to work by car and pay to park, or commute via mass transit
and pay to park at or near the mass transit site, can use pre-tax dollars to pay for
parking costs related to their commute to work, up to the current IRS limit.

Standard Plan Implementation Services:
  • Plan design assistance and documentation
  • System setup scheduled to meet client's needs
  • Electronic (soft) copies of forms

Standard Administration Services:
  • Receive and process new elections, changes and terminations
  • Claims Adjudication

Transportation Fringe Benefits Program: FAQs (Most Frequently Asked Questions)

Why would I want to participate in this program?
To save taxes – the funds you allocate to this plan are exempt of federal income tax,
social security and Medicare taxes, and in most states these amounts are also exempt
from state income tax. The funds you elect to contribute are set aside from your
paycheck on a pre-tax basis and deposited in an account in your name for this benefit.
As you incur eligible expenses you are reimbursed from the plan, either by cash
reimbursement or transit vouchers and passes where available.

How much can I set aside?
The plan limits vary from year to year current limits are as follows:
  • You may set aside up to $255.00 per month for qualified mass transit
and vanpooling expenses combined  (2016) - See link at bottom of this page.
  • You may set aside up to $255.00 per month for parking expenses (2016).
What does a qualified expense include?
  • For mass transit – tickets, passes, fare cards and fares you pay for your work
    commute on a bus, train, subway, ferry or qualified vanpool. Expenses NOT
    covered include bridge tolls, toll road fees or mileage.
  • For parking – expenses incurred to park near or at your place of work or at a
    mass transit facility. Expenses NOT covered include reimbursement to park at
    home if you work at home.
How do I enroll?
  • Complete the appropriate enrollment form indicating the amount you want
    deducted from your paycheck for transit and/or parking expenses. This amount
    will be deducted from each pay period on a pre-tax basis and deposited in your
    benefit account.
  • Return the completed form to your HR Benefit Coordinator.
  • Your enrollment will continue each month until you advise your HR department,
    in writing, that you want to terminate this benefit.
  • Enrollment forms can be e-mailed or faxed to you from your HR department. You
    may contact your HR department for assistance if you have any questions
    regarding this benefit program.
When can I enroll or make changes?
Check with your Benefit Coordinator for enrollment eligibility as a new hire or for a new
enrollment during the year. You will also be able to make changes during the year
without restriction. The timing of those changes will be at the discretion of your payroll
department. Your benefit coordinator or HR department can give you a time frame when
you need to make a change or if you choose to terminate your participation. Termination
and changes are required to be in writing.