Transportation Reimbursement Accounts and Commuter Benefits

Commuter Benefits

As fuel costs continue to be high, employees are looking for ways to save on their commutes to work. Transportation Reimbursement Accounts are a valuable employee benefit as they help employees save time and money when they use public transit for their commute to work. Plus, they help save the environment.

Qualified Transportation Accounts (QTAs)
- What are they?

QTAs allow employees to set aside pre-tax funds used for eligible transit and parking expenses related to commute to work, governed by IRC Section 132.

Benny Card

Elections and Spending

  • IRS sets maximum monthly pre-tax deduction and spending and adjusts annually; these limits reflect the maximum allowed pre-tax contribution and reimbursement amounts per calendar month.
  • Unused amounts can be carried over.
  • Contributions are available for reimbursement based on payroll deduction cycle (like Dependent Care).

Using the Card for Parking

When the participant uses the Card for parking expenses, there's no paying cash up front, no claim forms to fill out and no waiting for reimbursements. The Card helps with qualified QTA expenses such as parking expenses for any type of vehicle at or near the participant's work location or at or near a location from which the participant commutes using mass transit.

Commuter Benefits, Transportation Reimbursement Accounts

Using the Card for Transit

The Card can be used for mass transit passes, tokens, or fare cards purchased at a valid transit fare terminal..

Benefits to Participants

The Card program offers the following advantages for the participant:

  • Tax Savings - The IRS allows a monthly maximum of $130 for transit and $250 for parking per month to be deducted from an employee's pay before taxes, which can mean substantial tax savings.
  • Ease of Use - The Prepaid Benefits Card is easy to understand, convenient and provides an automatic way to pay for qualified transit expenses.
  • Flexibility - Participants are able to use a secondary form of payment when the purchase exceeds their monthly election.

Request More Information »