Commuter Benefit Plans Section 132

What is a Transit Reimbursement account?

A Transit Reimbursement Account is a provision under the Internal Revenue Code Section 132 that enables employers to allow their employees to have certain commuter expenses taken out of their paycheck on a pretax basis and deposited into an account. These expenses would be taken out before the Federal tax, FICA tax, and the State tax. The Transit Reimbursement Account also allows the employers to save on the matching FICA that they would have had to contribute on this amount.
How does a Transit Reimbursement account Work?

An employee elects to have an amount transferred from his gross paycheck, before taxes are taken out, and put into a Transit Account. When the employee incurs an eligible out-of-pocket expense for this account, they would present their Transit Reimbursement Account Debit Card for payment or receive a receipt indicating the date of service, what was purchased, and for how much. If they use their Transit Reimbursement Account Debit card, the funds would be deducted directly from their account. If they paid for the service or product by some other means, they would submit the receipt with a claim form, and would receive back out of their account the funds. This check would be tax-free.

Transit Passes and Van Pooling 2012 Limit
$125 Per Month

What is a Parking Reimbursement Account

A Parking Reimbursement Account is a provision under the Internal Revenue Code Section 132 that enables employers to allow their employees to have certain Parking Expenses associated with work to be taken out of their paycheck on a pretax basis and deposited into an account. These expenses would be taken out before the Federal tax, FICA tax, and the State tax. The Parking Reimbursement Account also allows the employers to save on the matching FICA that they would have had to contribute on this amount.
How does a Parking Reimbursement Account Work?

An employee elects to have an amount transferred from his gross paycheck, before taxes are taken out, and put into a Parking Reimbursement Account. When the employee incurs an eligible out-of-pocket expense for this account, they would present their Parking Reimbursement Account Debit Card for payment or receive a receipt indicating the date of service, where they parked, and for how much. If they use their Parking Reimbursement Account Debit card, the funds would be deducted directly from their account. If they paid for the service or product by some other means, they would submit the receipt with a claim form, and would receive back out of their account the funds. This check would be tax-free.

Qualified Parking Expenses 2012 Limit

$240 Per Month

Initial Setup / Installation / Take-Over

Plan Documents
Whether it is a new plan or take-over, HR Concepts will take the time necessary to consult with you to design the legal documents, integrate your existing plan, and bring your current plan into compliance.
Summary Plan Descriptions
After the Documents have been completed, HR Concepts will design a customized summary plan description that will be distributed to every eligible employee.
Corporate Resolution
If you require a corporate resolution or adoption agreement, HR Concepts will provide you with a template that you can use or customize onto your own company letterhead.

Enrollment Forms / Materials
HR Concepts will provide you with a customized enrollment form that will be used to enroll the employees into their CERA Account.
Enrollment Meetings
Upon the initial setup or takeover, HR Concepts will provide enrollment meetings and education sessions to introduce the Section 132 to the employees. After this initial time, HR Concepts will conduct enrollment meetings for employees annually and when there is a significant amount of new hires.
Claim Forms
If employees decide to not use the CERA Debit card, or for expenses not covered by the card, HR Concepts will provide claims forms that can be submitted for reimbursement from the accounts.

Daily Claims Administration
HR Concepts provides employers with a CERA Debit card for each employee. These cards are considered Visa cards; however, they can only be used at predefined locations. If an expense cannot be put through on the card, then the employee can submit this claim by mailing, faxing, or dropping it off to HR Concepts. Upon receipt, the claim will be processed and a check will be dispensed.

Online Employee Account Balances
Employees will have access to checking their balances of their accounts online. They will also be allowed to download claim forms and enrollment material.
Online Employer Account Statuses
Employers will have access to periodic plan activity and employee’s account balances via the web or by calling HR Concepts.