New IRS Regulations about the use of Debit Cards and Smartcards in a Commuter Benefits program have gone into effect as of January 1, 2012. This ruling details the process for using debit cards and smartcards in a commuter program authorized by Section 132(f) of the Internal Revenue Code. Although originally issued in November 2006, the effective date of these IRS rules has been delayed repeatedly because of requests from the transit industry for more time to modify their systems to be consistent with the IRS guidance in this area.
At this time, WageWorks has identified two transit providers where the rules will impact the use of the WageWorks Commuter Card:
Participants impacted by this change will receive a communication describing the transition steps that need to be completed for their transit provider before the deadline for May benefit month changes. If action is not taken, participants will not be able to use their WageWorks Commuter Card at ticket vending machines or ticket windows for these two operators.
WageWorks will be communicating this change to impacted participants in February.
Please contact your Account Manager to learn more.