A Guide to Parking and Transit Reimbursement accounts



A Guide to Transit and Parking Reimbursement Accounts

For Commonwealth of Massachusetts Employees

THE 1997 TAXPAYER RELIEF ACT AND THE 1998 TRANSPORTATION EQUITY ACT HAVE PROVIDED EMPLOYERS WITH FACILITIES IN DOWNTOWN URBAN LOCATIONS THE CHANCE TO PROVIDE A VALUABLE NEW EMPLOYEE BENEFIT AT LITTLE OR NO COST TO THE COMPANY. SECTION 132(F) OF THE INTERNAL REVENUE CODE NOW ALLOWS EMPLOYERS TO OFFER EMPLOYEES THE CHOICE TO DIRECT A PORTION OF THEIR SALARY INTO REIMBURSEMENT ACCOUNTS TO PAY FOR CERTAIN WORK-RELATED PARKING OR MASS TRANSIT EXPENSES ON A PRE-TAX, SALARY REDUCTION BASIS.

This is the second brochure for the new Qualified Transportation Benefits Program (QTBP) being rolled out for state employees in the Commonwealth of Massachusetts. Benefits Strategies, has been engaged by the Commonwealth based on their technical ability to manage a program of this size, strong references and established experience as a provider of benefit programs as well as lowest cost to the employees.

This Guide will answer the most frequently asked questions (FAQ’s) that payroll administrators may receive inquiries about concerning the pre-tax transit pass benefit plan.

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Q: Under the Commuter Benefit plan, what options are available for our employees to enroll in?

A: Options under the Commuter Benefit plan for employees to enroll in on a pre-tax basis.

• Transit pass purchases from regional and private transportation companies

• Out-of-state transit program benefits

• Van pool costs

• Parking costs

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Q: When do these plans take effect?

A: Benefit Strategies began the Transit Reimbursement for the MBTA for formerly participating employees as of May 1, 2010.

The Transit and Parking Reimbursement plans for all employees will be on or after July 1, 2010. Parking Reimbursement is a new option being offered for the first time to Commonwealth of Massachusetts employees.

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Q: How do the employees enroll in this plan?

A: Employees can enroll online at . Benefit Strategies will e-mail the department payroll contact to begin deductions. If the employee is currently enrolled in transit for the MBTA and enrolls for additional transit and / or parking their Visa debit card will be updated accordingly. If the employee is enrolling for the first time an account will be established and a debit card will subsequently be sent to employee home address.

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Q: How can our employees gain access to their accounts once enrolled?

A: Each enrolled employee will be able to access their account online to view up-to-date balances, track previous expenses, file current claim expenses and access useful forms (i.e. Direct Deposit form) among other convenient services.

On the website, employees will see a Commonwealth of Massachusetts logo on the lower left hand side of the home page. Employees will click on the logo and be taken to another page of instructions and useful hints about logging in. On that page, employees will also see a “Commonwealth of Massachusetts Login” button which they will click on to bring them to the login page. The employee will enter their appointed user name and password and gain access to their account.

**Note: All first time website users are given both the user name and password. Once they enter the given password, they will be prompted to enter a personalized password and subsequent security question for future log on use.

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Q: What’s the maximum PRE-TAX deduction allowed?

A: 2010 Transit limit is $230/month Federal, $120/month per MA state law AND the Parking limit is an additional $230/month for each Federal and State.

   

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Q: What happens if my monthly pass for transit exceeds the pre-tax maximum?

A: The Employee Transit account has a Pre and Post-tax option, so if your monthly expense exceeds the pre-tax maximum, but you would still like to purchase the entire month’s expense via the debit card, you would elect the pre-tax maximum and then elect the remainder as post-tax.

Example: Monthly Transit cost is $200. For the state the Pre-tax maximum is $120 so a Post-tax election of $80 will be deducted for your purchase,

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Q: How do the employees get reimbursed for their qualified transportation benefit expenses?

A: Employees may pay for their eligible services by using their debit card at the point of service or receive reimbursement by submitting a claim request form of the expense to Benefit Strategies, LLC. Monthly expenses that exceed exclusion limits must be paid with post tax dollars.

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Q: What happens to employees’ funds if they over-estimate their transportation costs?

A: At the end of the plan year, the accounts are closed and any unclaimed funds remaining are rolled over into a new account for the employee and can then be applied toward expenses incurred in the next plan year.

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Q: Should an employee need to submit a claim form to Benefit Strategies instead of using the debit card, how and when are they reimbursed?

A: Benefit Strategies sends direct deposits or reimbursement checks every Monday. All claim forms must be received by Benefit Strategies by Thursdays at 12:00 noon EST in order to go out the following Monday. If it is received after Thursday at noon EST, the reimbursement will be sent out the Monday after that.

Benefit Strategies offers two forms of reimbursement:

1. Direct Deposit

2. Reimbursement check mailed to the employee home address on file.

In order to have Direct Deposit, employees simply need to fill out the Direct Deposit Authorization form and send it to us. The form is found in the “Form and Resources” section on .

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Q: How can employees contact Benefit Strategies if they have a question on their account?

A: Employees can email any inquiry they have 24 hours a day, 7 days a week to Commonwealth@. Benefit Strategies also offers an experienced, well-trained professional staff to answer any issues that employees come across during office hours 8:30 AM to 5:00 PM EST, Monday through Friday.

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Q: Can employees make changes during the year, in case Commuter rates are increased?

A: Yes, employees may change their election amount month-to-month. A new enrollment form would need to be sent to Benefit Strategies to implement the change.

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Q: Can Benefit Strategies offer verification of insurance?

A: Yes. Benefit Strategies can provide employees a letter verifying their Transit/Parking coverage so they may take the letter to their car insurance company for discounts (where applicable).

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Q: What are the rules for refunds?

A: Unless it is an administrative error, the election to the QTBP plan is irrevocable. In the event of an error Benefit Strategies would return the funds to the Commonwealth for processing the funds back to the employee.

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Q: What are the fees?

A: The fee is $1.50 a month for all QTBP services. The fee is paid by your agency if it is an agency under the control of the Governor. While the fee will process out of your paycheck, you will have a reimbursement to you in the same paycheck.

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Q: When will deductions be taken from my paycheck?

A: Transit benefit deductions occur in the first payperiod in the month. Parking deductions occur the second payperiod. The fee is taken once a month based on whether you are participating in Transit Benefit. If you participate in Transit, the fee is deducted in the first payperiod, if you participate in parking only; the fee is taken the second payperiod. The schedule is posted on the Benefit Strategies website.

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Q: When will funds be loaded to my debit card?

A: The debit card is loaded on the 20th of the month prior to the benefit month for both Parking and Transit Benefits.

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Q: How does this Parking Reimbursement Plan work?

A: You will choose the amount to have deducted from your paycheck based on your monthly Parking expenses. Like the Transit Reimbursement Plan, the IRS limits your monthly pre-tax contribution amount to $230. Should your expenses exceed the maximum, you can put the remainder in a post-tax account. Changes can be made on a month-to-month basis, but since this is a prefunded account, you must pay close attention to the deadlines each month to make your changes or they will not be effective until the following month.

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Q: How do I use the plan if my parking facility only accepts cash?

A: If your parking facility only accepts cash, you may file a claim for the current month on or after the first of that month. Benefit Strategies will process payment of all claims received by Thursday at noon by the following Monday. They will issue you a check or send you a direct deposit reimbursement depending on your current reimbursement method.

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Q: My parking facility accepts the debit card. Can I use the Benefit Strategies VISA card to pay for my monthly parking expenses?

A: Yes, you may use your debit card to pay for the purchase of your monthly parking expenses.

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Q: Well, I also participate in the Transit account. Do I receive a new Visa Debit card for the Parking Plan or can I use the same one I already have for both plans?

A: The Benefit Strategies Visa Debit Card can be used for both the Parking and Transit benefits. You will not receive a second card if you are already enrolled in the Transit benefit and subsequently enroll in the Parking benefit.

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Q: What expenses can the Parking Plan be used for?

A: Commuter Parking -

1. Parking a vehicle in a facility that is near my place of work OR

2. Parking at a location from where I commute to work (e.g., the cost of parking in a lot at the train station so that I can commute in on the train.)

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Q: Unlike my MBTA pass, I usually pay either my garage every day or once a week, but definitely not once a month before the month even starts. Is it still okay to enroll and use the Parking benefit that way?

A: Yes, absolutely. Most parking facilities do not charge monthly anyway. If yours does, that’s great. However, once the month’s parking balance is loaded onto the Visa debit card, it is your money to use however you’d like, provided it’s for eligible, IRS accepted parking expenses.

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Q: Is there a deadline for submitting a claim? For instance, can I submit a claim for reimbursement in November for an expense I incurred way back in June?

A: The rules state that you may be reimbursed for expenses incurred up to 180 days from the date of service. So in the example provided, yes, you could submit a claim form in November for an expense incurred in June and be reimbursed.

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Q: How do I sign up?

A: Please click on the following link to go to the Commonwealth Transportation Benefits home page. The enrollment form can be accessed by clicking on the CTB Election Change icon.



 If you have any questions or concerns feel free to contact us at 1-877-353-9442 or communicate with us via:

Email to commonwealth@

Fax to: 603.647.4668

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