Also known as IRC 132(f) Plan, Commuter Choice plans were approved by the IRS in 1998.
- Allows Employers to adopt a plan offering pre-taxability of eligible transit/parking expenses.
- Employees elect to participate in the program through an enrollment process and have elected amounts deducted from their paycheck on a pretax basis (very similarly to FSA benefits) and as eligible expenses are incurred, are reimbursed from the plan.
- Payroll deductions are made, per the employee’s election, up to the annual limits set by the IRS, (contact EBS Customer Service for current limits).
- Parking Expenses are reimbursed from the plan on a monthly basis
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