Section 132 Transportation Plans

DEFINITION
A Section 132 Transportation Plan allows employers to deduct certain transportation expenses at 100%.

Employees may payroll deduct amounts for parking and van pooling within the monthly limits. Employees save state, federal, and FICA payroll tax deductions and permanently reduce their W-2 wages.

The plan provides 100% tax deductibility for:

• Parking Fees ($245/month - limits based upon Year 2013 amounts)
• Van Pooling/Transit ($245*/month - limits based upon Year 2013 amounts)

* Transit parity was reinstated through 12/31/13 under the American Taxpayer Relief Act of 2012.

Transportation Plans have no tax filing or discrimination testing requirements.

Employee reimbursements work in a similar manner to a Section 125 Plan's Dependent Care Account. An employee's reimbursement is never greater than the account balance. No use-it-or-lose-it law applies, unless employment terminates prior to using the accumulated balance. Any unused balance rolls forward to the next plan year.

The plan allows you to participate without changing your employee transportation methods.

HOW THE PLAN WORKS:

• Complete Transportation Plan Design Checklist
• Determine eligibility requirements for participants
• Set up employer-employee funding options
• Distribute and collect employee election forms
• Pay administration fees monthly

BENEFITS

• No tax forms to prepare
• Employees file claims with Benefits Design Group, Inc.
• The plan will stay in force until specifically cancelled.

BENEFITS DESIGN GROUP, INC. PROVIDES:

• A plan designed to your specifications
• A formal adoption agreement of plan parameters
• Assistance in setting up employer-employee funding arrangements
• All necessary forms and information regarding employee participation and reimbursement requests
• A toll-free number to respond to questions
• Maintenance of all account records
• Verification of expenses
• Year-end summary of benefits
• Internet access to account information