October 1, 2014
Effective October 1, 2014 you are eligible for the Bay Area Commuter Benefits Program. This is an employee-funded pre- tax program for "Qualified Transportation Expenses."
- "Transit Passes" which include any pass, token, fare card or voucher that entitles you to transportation on mass transit facilities or provided by any person in the business of transporting persons for compensation in a highway vehicle with a seating capacity of at least six adults.
- "Qualified Parking" includes parking provided to you by the Company: (i) on or near the employer's business premises; or (ii) at the location from which you commute to work (including commuting by carpool, commuter highway vehicle or mass transit facilities. Parking on or near the employer¿s business premises includes parking on or near a work location at which you provide services for the employer. Metered parking qualifies.
Maximum Pre-tax expense:
The maximum expense for Transit Pass expenses is $130 per month in 2014. The maximum expense for Qualified Parking expenses is $250 per month in 2014.
How it works:
- Complete the Commuter Benefit Plan Enrollment Form and send it to our office.
- Each week in which you incur qualified commuter expenses, send the Transportation Reimbursement Claim form AND your receipts with your time card. The amount of your qualified expenses will be paid to you from your hourly rate in pre-tax dollars.
Let's say you earn $15 an hour and work 40 hours a week, that is $600 in wages. You then submit a claim for $30 in qualified transportation expenses incurred in that week. You will be paid $570 in gross wages with all of the statutory taxes withheld and $30 in wages, which is the amount of your qualified commuter expense, WITH NO federal income tax or social security tax withheld. Your gross pay will still be $600, but you net pay will be slightly higher based on the amount paid that is not taxed.