Benefits of a 132 PlanEmployers:
Frequently Asked Questions
CBS Administrators is committed to the success of your benefits program. We are here to help and to be a resource to you and your employees.
We understand there may be a variety of questions when offering a new benefit or switching administrators. Below we have compiled some of frequently asked questions. We alwasy prefer to help you directly, so please contact us to get your specific question asnwered.
Transit Reimbursement Account
The Transportation Equity Act for the 21st Century (Internal Revenue Code Section 132 and TEA-21) allows employers to offer employees the opportunity to set aside a portion of their salary to pay parking and mass transportation expenses. The employee will not be taxed on amounts set aside and used for qualified expenses.How it Works
The transportation fringe benefit is similar to the pre-tax flexible spending accounts available for medical expenses and dependent care without the “use it or lose it penalty”. Employees can elect up to $245 per month for eligible parking expenses or up to $245 per month for Mass transit expenses. The funds are disbursed to the employee through the use of vouchers, smart-cards or transit passes.
- Local Parking - Parking a vehicle in a facility that is near the employee’s place of work.
- Park and Ride - Parking at a location from where the employee commutes to work (for example parking costs at Mass Transit stations).
- Mass Transit - Eligible Mass Transit expenses include tokens, passes, smart cards or fare cards for trains, streetcars, vanpools, busses, subways or ferries.