Parking and Transportation Fringe Benefit Plans
How do they work?
Employees estimate parking and/or transportation expenses for the plan year and enroll in the plan
for that amount. The money is deducted pre-tax from each paycheck and is deposited into an account.
Claims for expenses are submitted to the account and the reimbursement is issued to the participant
accordingly.
You will set a period before the start of each plan year to allow your employees to enroll in these
benefits – this is the Open Enrollment period. If you choose you may allow employees to join the plan
mid year depending on the plan design you select.
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Employees enroll in the plan for the amount that they plan to use during the plan year. The
election amount will be setup as a payroll deduction and then copies of the enrollment materials
will be forwarded to Flex-Plan.
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Once received, we will send out confirmation letter with general plan information, instructions on
accessing online account features and a claim form to every employee. We will also send an employee
deduction report every pay date, this report will need to be verified and sent back.
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Your plan may allow you to make changes during the plan year. Please consult with Flex-Plan to see
if your plan allows for mid-year changes.
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There will be a claims run out period after the end of the plan year in which to submit old
claims. The account will be closed at the end of the run out period and no further claims will
be processed and unused dollars will be forfeited to the plan.
Rollover
A special feature of Section 132 benefits is the ability to have funds rollover from one plan year to
the next. The rollover of funds would not occur until after the end of the claims run out period.
Not all plans allow a rollover, consult with Flex-Plan to see if it would be best to offer this
feature.
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