Insurance Technology Industry News

TMCNet:  Commuter Benefits Administrator, Clarity Benefit Solutions, Shares Six FAQs about Commuter Benefit Plans

[August 09, 2018]

Commuter Benefits Administrator, Clarity Benefit Solutions, Shares Six FAQs about Commuter Benefit Plans

NEW YORK, Aug. 9, 2018 /PRNewswire/ -- Commuter benefits company, Clarity Benefit Solutions, shares six FAQs about commuter benefits plans.

Commuter benefits plans are designed to encourage employees to use public transportation by allowing them to use pre-tax dollars to pay for a variety of commuting expenses. Here are six questions employers and employees may ask.

  1. What are the advantages of a commuter benefits plan? A commuter benefits plan can provide savings for employers and employees alike. First, these plans reduce employers' payroll taxes. The more employees who sign up to receive these benefits, the more money the employer saves. Employers can also use commuter benefits programs as a leveraging tool to attract and retain employees—especially in metro cities. Employees can lower their monthly expenses since the funds used to pay for commuting are pre-taxed.
  2. How many employees does an employer need to have to sign up for commuter benefits? There is no minimum number of employees. mployers can offer commuter benefits with just one employee.
  3. What are the typical types of commuting benefits that are covered under this plan? The following are some examples of different commuting benefits covered under commuter benefits plans: bus, train, ferry, trolley tickets and passes; parking expenses, garages, meters, and lots; vanpool fees; and bike maintenance and repair.
  4. What types of expenses are not covered under this plan? Taxis, tolls, mileage, gas/fuel, costs related to business travel, airport parking fees, and residential parking fees are not eligible expenses in commuter benefits plans.
  5. What is the difference between a pre-tax deduction and a subsidy commuter benefit plan? A pre-tax deduction is an employee-paid payroll deduction; and a subsidy is an employer-paid benefit. Employers can offer these programs as a pre-tax payroll deduction, subsidy, or a combination of both methods.
  6. What are the monthly tax-free allowable limits? For transit and eligible vanpooling, the limit is $260, for qualified commuter parking the limit is also $260, and for combined transit and parking benefits the limit is $520.

About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.


Cision View original content:

SOURCE Clarity Benefit Solutions

[ Back To Insurance Technology's Homepage ]