Parking and Transportation Fringe Benefit Plans

A Transportation Fringe Benefits Plan (Section 132) enables your employees to set aside pre-tax dollars to pay for work-related parking and commuting costs. If employees have to pay for parking or commuting costs, this is the right benefit.

Eligible Expenses for Parking and Transportation Fringe Benefits

Parking & Transportation Conversion

You may provide your employees with the ability to purchase mass transit or parking benefits through a payroll deduction. Employer sponsored parking lots and bus passes are examples of expenses that can be paid for this way. These deductions are automatically taken pre-tax from paychecks and employees don’t need to do anything to enjoy this benefit.

Parking Conversion Tax Savings Example

Parking & Transportation Flexible Spending Accounts

If employees pay out of pocket for work related commuting and parking expenses, the Parking and Transportation Flexible Spending Account will help save you and them money!

Mass Transit Reimbursement Tax Savings Example

Parking Reimbursement Tax Savings Example