This plan allows you to set aside pre-tax dollars each month to pay for transit and work-related parking expenses. You simply decide how much to contribute each month and that amount is moved from your paycheck into a Commuter account, before Federal and State income and FICA taxes are taken out.
From there, the money is there for you to use in a variety of ways - you can even set the program to automatically refill your order for transit or parking passes each month. Basically, you save money for commuter expenses you’re already paying for.
The contribution amount is up to you based on how much you currently spend and anticipated spending on commuting in the coming year. However, each year, the IRS establishes maximum pre-tax limits. For 2013, the amounts are as follows:
Note: 2014 limits will be announced before the end of 2013 which may change contribution limits for both parking and transit.
There's no "use it or lose it" policy with this program, so available balances can be rolled over year-to-year. However, if you stop working for your employer, you will lose access to the funds.
The WageWorks Commuter program covers public transit costs incurred by you in connection with travel between your residence and your work place. Examples of eligible expenses include:
The program does not cover expenses related to tolls, traffic tickets, fuel, taxis, mileage, or payments to fellow participants in a carpool.
We make it as easy as possible for you to use your commuter account, providing four, hassle-free payment options: