To receive our monthly email newsletter containing news updates, general interest items, and Freedom Services staff profiles, please contact our Communications Department.
Employees can choose to pretax a portion of their wages for qualified parking and transportation expenses. Work related parking and mass transportation costs can be deducted from pay. Amounts employees allocate for these expenses are exempt from federal, state, Medicare and Social Security taxes. Employers do not pay the Medicare or Social Security tax matching contribution.
Qualified Parking is parking provided to an employee at or near the business premises of the employer, or at a location the employee commutes by transit pass, commuter highway vehicle or carpool. Parking must be a result of traveling to and from your primary business location. The maximum amount that can be pretaxed for parking expenses is determined by IRS guidelines annually.
Qualified Transportation is transportation on a commuter highway vehicle (bus, van pool) provided the transportation is in connection with travel between the employees' residence and place of employment or a transit pass used for commuting to and from the workplace. The maximum amount that can be pretaxed for transit expenses is determined by IRS guidelines annually.
Qualified Bicycle Expensesare costs associated with using a bicycle for commuting between your residence and place of employment. Expenses include the cost of purchasing a bicycle, bicycle improvements, repair and storage. The employer will contribute for each month a bicycle was used for a substantial portion of commuting.
CONVERSION ACCOUNTS allow employees to purchase either a parking spot or transit pass directly from their employer. The cost of the expense is deducted from employees' pay.
REIMBURSEMENT ACCOUNTS require employees to make their own transportation or parking arrangements. Expenses require documentation to be submitted for reimbursement from the funds employees' have allocated to their accounts.
Copyright © 2013 Freedom Services, Inc. All Rights Reserved.