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.”

Since 1995, EBS has successfully administered commuter and transit benefits for our clients, including several nationally recognized firms. Prior to the 1998 legislation, commuter/transit benefits were offered on a post-tax basis only. Once the legislation was passed, EBS added the pre-tax benefit to our existing commuter and transit benefits program, allowing our clients to easily and efficiently enhance their own benefit offerings to employees. We currently offer voucher and transit pass distribution as well as cash disbursements and a Flex Benefit card option.

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
  • Claim Reimbursement Processing
  • Direct Deposit
  • Check
  • Transit Pass or Voucher
  • Flex Benefit Card
• Monthly employer reporting
  • Group account activity - year to date
  • Disbursement reports
• Web access for employer administrative changes

Standard Customer Service

• Toll-free live customer service support
• Web account balance reports
• Customer service available via e-mail
• Dedicated plan administrator at client level
• Web access to reports at client levels

Standard Renewal Services

• Update plan design
• Update plan year/payroll schedule information in systems
• Annual enrollment system load
  • Electronic
  • Manual (paper, additional fees apply)

Optional Services (additional fees apply)

• Custom or divisional reports
• Custom programming or data mapping
• Open enrollment fulfillment
• Printed enrollment materials
• Annual statement fulfillment (stuffing and mailing)
• Welcome letter or plan election confirmation letters
• Enrollment assistance
  • On-line
  • On-site
  • Paper
  • Call-center