A Transportation Reimbursement Account (TRA) allows your employees to cover commuting costs with pre-tax income. See how isolved can help determine the needs of your TRA based on the cities in which your employees work and commute.
QTAs allow employees to set aside pre-tax funds used for eligible transit and parking expenses related to commute to work, governed by IRC Section132. In other words, the money deposited into a QTA will never be taxed. That saves employees money on every dollar they set aside. Employees can save as much as 40% on transportation expenses just by participating in a QTA.
Qualified expenses include costs such as:
Annual contribution limits are set by the IRS and they do change from time to time. isolved stays on top of these changes and you can see all the contribution limits here.
Employers with 50+ full-time employee within the jurisdiction of the Air District must offer one (or more) of the following commuter benefit options:
All non-government employers with 20 or more full-time, non-union employees working in the area required to offer full-time employees the opportunity to use pre-tax income to pay for their transportation by public or privately owned mass transit or in a commuter highway vehicle.
Employers with 20+ full-time employee working in the District of Columbia must offer one (or more) of the following commuter benefit options:
Employers with at least 20 full-time employees who are not in a collective bargaining agreement must offer one (or more) of the following commuter benefit options:
Transit plans are easy to set up and use, and participants will receive debit cards that allow them to pay for the expenses with the funds they set aside, instead of having to wait for reimbursement. Transit pass purchases will auto-adjudicate 100% of the time which eliminates the requirement to provide documentation. For administrators, isolved offers:
If you’d like to learn more about isolved transit plan solution, click here