Parking and Transit Plans

Section 132(f) of the Internal Revenue Code allows qualified transportation expenses up to certain limits to not be taxed. Expenses including qualified parking, vanpooling, and transit passes can be reimbursed from this account. Irrevocable elections are not required, meaning the employee is permitted to make, revise and halt their elections.

This section of the tax code gives an employer a ready means to enhance their employee benefit offering and reduce both the employer's and employee's tax liability. Just another way you can offer more to your employees and keep your company Ahead of the Curve.