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Qualified Transportation Plans (Commuter Benefits)

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employee training
Recommended age: 16 years old
53 times made

Created by

Wednesday Wisdom
Wednesday Wisdom
United States

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Qualified Transportation Plans (Commuter Benefits)Online version

Section 132(f)

by Wednesday Wisdom
1

All employees, regardless of full-time or part-time status can be eligible to participate in a commuter benefits program.

2

An employer with a fully remote workforce is never required to offer commuter benefits.

3

A terminated employee can continue to use unspent commuter funds upon termination if they elect COBRA.

4

Once an employee enrolls in commuter benefits, elections are irrevocable for the plan year unless they experience a permitted election change event.

5

There is a federal requirement for an employer to offer qualified transportation fringe benefits (aka commuter benefits).

6

Employers who offer a qualified transportation plan must provide employees with a Summary Plan Description (SPD) about their commuter benefits.

7

There are 3 forms of qualified transportation fringe benefits under IRC §132(f): transit passes, commuter highway vehicle (vanpooling) & qualified parking.

8

Upon termination an employee can submit qualified commuter benefit expenses incurred during active employment for the employer-defined run-out period.

9

If an employee is involuntarily terminated, an employer can return unspent commuter benefits as taxable income upon termination.