Tax-free transportation reimbursement for qualified vanpooling, transit passes, and parking costs is fast becoming a highly-valued voluntary benefit.
Under the Transportation Equity Act of the 21st Century, employees can use pre-tax contributions to pay for commuting expenses. Valuable to both employer and employee, commuter benefit contributions are exempt from Federal, most State and Social Security income taxes, as well as the payroll tax paid by employers. With ADP Online Commuter Benefits, you can provide your employees this valuable benefit without additional administration.
With ADP Online Commuter Benefits Everybody Benefits.
Employers…
- Create tax savings with participant contributions
- Simplify, automate and consolidate deduction
transactions
- Ensure overall compliance with Section 132
regulations
- Increase employee satisfaction with virtually no
additional costs
Employees…
- Eliminates the perception of ‘paying twice’ –
contributions are made in the month of media order
- Flexibility of monthly or recurring orders allows
for a customized employee solution
- Convenience of home delivery of passes and
other fare media
- Obtain real-time access to accounts and ordertracking
via the telephone or Internet
ADP Online Commuter Benefits offers a simple, employee-friendly ordering and delivery system for all of your plan participants’ commuting needs.
The ADP Online Commuter Benefits Solution is designed to give employers the peace of mind that their plan is being administered in strict compliance with IRS regulations.