Transportation Plan Administration
What is a Qualified Transportation Plan?
This plan, under Section 132 of the IRS code, allows employees to pay for incurred transit and parking expenses with pre-tax dollars (including federal, Social Security and Medicare taxes).
Why SBA for Transportation Plan Administration?
A transportation plan is often in addition to other plans administered by SBA, such as FSAs, HSAs, HRAs, POPs and COBRA. Using SBA for multiple plans means less paperwork for the employer. Additionally, for employers that offer employees a debit card, SBA’s debit card works across multiple plans, including Transportation, HSAs and FSAs.
What should you know about Seattle’s Transit Benefit Ordinance?
If you are an employer within the Seattle City limits or you are an employer with employees who travel to Seattle and spend at least 10 hours per week in Seattle, you may be required to offer the transit benefit beginning January 1, 2020. Employers with more than 20 employees are subject to the Seattle City Ordinance passed in 2018. If you already offer transit relief to your employees, this meets the ordinance requirement. If your employer-paid transit reimbursement is less than the monthly statutory limit, employees may need to pay the balance of their transit expenses with pre-tax dollars through this plan.