Qualified Transportation Benefits (QTB)

Under IRS Section 131 Qualified Transportation Benefit, employers are allowed to offer workers the ability to use pre-tax dollars to help pay for the cost of commuting to and from work. There are three different types of Transit/Commuter Benefits.

Parking Account

  • Covers cost of parking at or near place of work or for:
    • Parking at transit facilities (bus, train or subway stations)
    • Carpool pick up locations
    • Commuter vehicle (vanpool) pick up locations
    • Parking meter
  • Up to $260.00 per month
  • Debit Card
  • May be held at same time as Transit Benefit

Public Transit / Mass Transit / Vanpool Account

  • Fares for buses, trains, subway and ferry
  • Vanpool must have seating for 6, not including driver
  • Up to $260.00 per month
  • Debit Card
  • May be held at same time as Parking Benefit

Bicycle

  • Covers cost of purchase, maintenance and storage if used for commuting to work
  • Employer-funded
  • Up to $20.00 per month
  • Must accrue expense and file manual claim
  • Cannot use in conjunction with Parking or Transit account

Funds contributed to any of these accounts are not transferable to a different account nor are the funds portable in the event of termination, but they do rollover from month to month and across multiple plan years. Also, like the DCAP plan, the Parking, Transit and Bicycle accounts cannot be over drawn so participants can only be reimbursed what has been contributed so far.