You’ve got questions? We’ve got answers!
To assist employers in determining whether offering a commuter benefit plan is a good fit their organization, we’ve created this helpful resource of Frequently Asked Questions (FAQs). To learn more about VitaCommute or to request a custom proposal, click here.
For FAQs specific to VitaCommute participants, click here.
General
VitaCommute
A qualified commuter benefit plan is an employee tax-savings program governed by IRS Code Section 132. Employees elect to participate in the VitaCommute plan on a monthly basis and can choose to reduce their taxable income by an amount equal to their anticipated commuting expenses (e.g., parking fees, transit passes, shuttle services, bus fares), up to the statutory monthly limits. Then, based on the method of reimbursement available, transit passes or vouchers, Smartcards, or debit cards are provided directly to the employee to cover the cost of the commuter expenses. For qualified parking expenses, the option to have payments sent directly to the parking facility may also be available.
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Offering a qualified commuter benefit plan is about providing employees with the opportunity to reduce their taxable income on commuting expenses they’re already paying, while also reducing the payroll taxes paid by the employer. Depending on their tax bracket, employees can save 30 to 40% off their commuting expenses simply by setting aside the funds in a qualified commuter benefit plan. Not only is this an attractive option for employees who already commute to work, but it can also be a powerful incentive for employees considering alternative commute options.
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For 2012, the monthly pre-tax limits are $125 for transit and vanpool expenses, and $240 for parking expenses. If you pay for parking and for transit, you can take advantage of both sides of this benefit. These limits are set by the federal government and are subject to change annually.
There is also a $20 per month bicycle benefit, which is fully employer subsidized. If you take advantage of the bicycle benefit you cannot take advantage of the transit or parking benefits in the same month.
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By offering a qualified commuter benefit plan, employers can save on the following payroll taxes for all contributions set aside through pre-tax reductions:
- Social Security Tax (FICA) 6.2% to wage base
- Medicare Tax 1.45% on all wages
- Federal Unemployment Tax (FUTA) 0.8% on first $7K
- State Unemployment Tax (SUTA) 3.8% on first $7K
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Currently, qualified commuter benefit plans are not subject to any non-discrimination testing requirements.
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VitaCommute is a commuter plan administration product offered through Vita Administration Group, a division of The Vita Companies. VitaCommute is specifically designed for companies who wish to provide their employees with a robust benefits package, while also achieving tax savings for themselves and for their employees. VitaCommute offers a comprehensive and superior administration service to our clients, in order to ensure full compliance with all aspects of the IRS commuter plan regulations. Below is a small sample of the services VitaCommute provides:
- Personal Account Manager
- Full Plan Design Customization
- Comprehensive Benefit Delivery Options
- Nationwide Transportation Network
- 24-Hour Document Processing Turn-Around
- Signature-Ready and Audit-Proof Plan Documentation
- Full Suite of Web Resources for Employees and Employers
- On-site Customer Service Center
Request a custom VitaCommute proposal here.
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VitaCommute allows employees to save on their eligible commuting expenses by enabling pre-tax contributions via payroll. Then, in partnership with WiredCommute, VitaCommute provides an easy-to-use Web-based enrollment tool for employees to select the commuter benefit products that best meet their specific commuting needs. Depending on the commuter benefit products selected, employees are provided with direct delivery of the applicable transit passes, vouchers, Commuter Check debit card or Direct Pay functionality.
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Once an employee makes a proactive commuter benefit election via the VitaCommute Web interface, the applicable commuter products are mailed directly to the employee’s preferred delivery address. Depending on the commuter product selected, the employee can then redeem the fare media at any authorized transit agency location. If the employee elects to have parking fees paid directly to the parking provider, the employee won’t receive any fare media as the funds will be transferred automatically.
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VitaCommute clients have direct access to a dedicated account manager and support team, in addition to executive-level support within the Vita organization. No sales team, no phone trees, no endless chains of command.
In addition, VitaCommute clients have access to a full suite of online resources, including archived reports, participation summaries, eligible expense database, commuter expense calculator, and much more. All of these resources are available at the click of a mouse to allow easy access to the information you need.
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Absolutely! VitaCommute offers the ability to customize commuter benefit plans to suit the unique needs of each company. If you have a downtown office location where employees have to pay for parking, then we’ll work with the parking provider to set up the Direct Pay functionality to enable employees to have their monthly fees paid automatically. If you have an employee population that doesn’t take advantage of public transportation, then VitaCommute can help by educating employees on the benefits of mass transit, while also incentivizing employees by offering a tax-savings program. The sky’s the limit when it comes to customizing a commuter benefit plan for your organization.
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