Section 132 Transportation Plan Administration

A Section 132 Transportation (Transit) Plan allows employees to pay for commuter, transit, and qualified parking expenses with pre-tax dollars. The sponsoring employer also saves the 7.65% FICA match on each premium dollar their employees pre-tax. A transit plan is a way for employers to help employees decrease daily transportation costs and encourage them to utilize different types of commuter options.

Qualified Transportation expenses include any of the following: qualified parking expenses at or near the employer and/or the location from which employees commute by vanpool, carpool, or in a commuter highway vehicle, passes for mass transit facilities such as a subway, and expenses related to commuter vehicles used in vanpooling.

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