If an employee commuting to work has parking expenses associated with that commute, those expenses can be paid by either the employer, the employee or a combination of both.

The fair market value of vanpooling expenses is based on all the facts and circumstances. Vanpooling benefits may be valued under the automobile lease valuation rule, the vehicle cents per mile rule or the commuting valuation rule. If one of these special valuation rules is used, however, the employer must use the same rule to value the use of the commuter highway vehicle by each employee who shares the use.

Check with your employer to see if they offer a debit card to pay for qualified parking or transit expenses. If yes, the card will work only at transit and parking locations where the card machines are programmed with parking or transit merchant codes. Be sure to swipe the card for no more than you have in your parking or transit account(s). If you swipe the card for more than the balance in your card, or for more than the monthly statutory limit, the whole transaction will fail.

Each year, the IRS sets the limit for the calendar year limit. Click this link to see the maximum monthly limit for each benefit.

The monthly expense must be calculated on a monthly basis.

Example #1: January’s ferry + bus combination = $280. In 2019 the statutory limit is $265. Only $265 can be reimbursed. The unpaid balance of $15 cannot carry over to a future month.

Example #2: January’s transit expenses are $170. July’s transit expenses are $280. July’s reimbursement is $265, the maximum monthly limit in this example. January’s smaller expense total has no bearing on reimbursing more than the maximum monthly limit in July.

Any employer can sponsor a Qualified Transportation plan for its employees no matter what size. Eligible employers include corporations (Subchapter S or Subchapter C), partnerships, non-profit organizations, government entities, limited liability companies (LLCs) limited liability partnerships (LLPs) and sole proprietorships. (Caution: certain owners are ineligible to participate). Government employers can sponsor plans as can companies in the private sector.

Only individuals who are “currently employees at the time the Qualified Transportation plan is provided” are eligible to participate. The term “employee” includes only common-law employees (receiving W-2), other statutory employees (such as officers of corporations), and leased employees.

Receipts for transit pass purchases, monthly parking statements or invoices, parking meter’s which provide window tickets, vanpool statements or invoices are all eligible documentation for reimbursement along with the required claim form. When no receipt was provided, a personal attestation/certification regarding the type or amount of expense incurred is required (language included on Transit claim form).

Yes, you are still considered to be an employee during the maternity leave. If you need to pay for parking to hold your spot until you come back; you are eligible for parking reimbursement.

“Transit pass” means any pass, token, farecard, voucher, or similar item that entitles a person to transportation on mass transit. There are different types of mass transit facilities – busy, ferry, rail, subway, monorail, streetcar, and tramcars, among others. Vanpool expenses may also have transit pass expenses if the vanpool is in the business of transporting persons for compensation or for hire and if the seating capacity of the vehicle is at least six adults (not including the driver).