EMPLOYEE Pre-Tax Commuter Benefit Program
State and Federal tax laws allow employees to save taxes on parking at work and transit or vanpooling expenses incurred to get to work. Employees save by setting up a pretax payroll deduction that reduces taxable income. Your tax savings will vary, depending on your deduction amount and your tax bracket. Most employees will save approximately $12.50 on every $50 they pay for qualified expenses (25%).
What is the Pre-Tax Commuter Benefit Program?
The Pretax Commuter Benefit Program is a qualified transportation benefit program authorized by Internal Revenue Code (IRC) § 132 and adopted by the State of Missouri.
Pre-Tax Parking: Parking at or near your work location or at or near a location from which you commute to work by car pool, commuter highway vehicle or mass transit. Out-of-pocket parking fees for parking meters, garages and lots qualify. Parking at or near your home is not an eligible expense.
Coverage in the program commences the month after receipt of the enrollment form, and is ongoing until you cancel your election.
Mass Transit/Van Pooling: Transit passes, tokens, fare cards, vouchers, or similar items entitling you to ride a mass transit vehicle to or from work. The mass transit vehicle may be publicly or privately operated and includes bus, rail, or ferry. For most Mass Transit participants, ASIFlex will issue you a voucher, or transit, pass directly. Van Pooling is defined as a commuter highway vehicle with a seating capacity of at least 7 adults (including the driver). At least 80% of the vehicle mileage must be for transporting employees between their homes and workplace, with employees occupying at least one-half of the vehicle’s seats (not including the driver’s seat). Not all employees riding in the van must work for the State of Missouri for these expenses to be eligible.
Deductions for your Mass Transit/Van Pooling program commence the month following receipt of your enrollment, and coverage begins the month after that.
Limits on Monthly Pre-Tax Deductions and Expenses
Annual limits are set by the IRS. The following limits are
currently in affect:
Parking deduction is limited to $240/month;
Transit passes & vanpooling deduction, whether separately or combined, is limited to $125/month.
costs above these limits cannot be exempt from taxes and cannot be
carried over to future months.
How does the Program work?
You authorize your employer to deduct a pre-tax amount for parking or van-pooling/mass transit from each paycheck, up to the IRS limits stated above.
Generally, ou pay for the qualified transportation & then file a claim with ASIFlex to recover the amount deducted from your paycheck. Since these deductions are taken on a pre-tax basis, you save taxes.
When vouchers (generally for mass transit) are available, the
vendor will be paid directly by ASIFlex, and the voucher will be
mailed to your home address. A double deduction will be taken
from your first paycheck in the month following enrollment to pay
for the voucher to be used the next month. All subsequent
deductions will return to one-half the monthly cost of the mass
transit voucher. For example, if you enroll in the Mass
Transit category by May 30th, and your bus pass costs $60 per month,
your first pre-tax deduction will be for $60 from your June 15th
paycheck. ASIFlex will use this deduction to buy your voucher
for July. Your deductions after that will be reduced to $30.
The deduction taken from the second paycheck in June and the first
paycheck in July will pay for August's transit voucher.
Coverage in the program is ongoing until you cancel your election.
You enroll by completing an enrollment form you can get an
Enrollment Form. Remember that you can enroll, change or terminate your pre-tax deduction at any time. However, all changes are effective on checks issued the first of the month following the change or enrollment.
Where do I get a claim form?
ASIFlex will mail you a supply of claim forms after they receive your enrollment information. Additional
Claim Forms are available by clicking online. You may copy the claim form or request more from ASIFlex.
How do I submit claims?
Claims and receipts may be sent to ASIFlex via U.S. Mail or faxed to 1 (877) 879-9038.
How often are claims paid?
Claims are generally processed within one business day of receipt. Payments are released up to the amount you currently have available. Payments will be released, up to your available funds, each business day. Be sure to sign up for direct deposit to have quicker access to your funds. Payments will be made by check for those not signing up for direct deposit.
When vouchers (generally for mass transit) are available, the vendor will be paid directly by ASIFlex and the voucher will be mailed to your home address. A double deduction will be taken from your first paycheck in the month following enrollment to pay for the voucher to be used the next month. All subsequent deductions will return to one-half the monthly cost of the mass transit voucher. For example, if you enroll in the Mass Transit category by April 30th and your bus pass costs $60 per month, your first pre-tax deduction will be for $60 from your first paycheck in May. ASIFlex will use this deduction to buy your voucher for June. Your deductions after that will be reduced to $30. The deduction taken from the second paycheck in May and the first paycheck in June will pay for July’s transit voucher. Coverage in the program is ongoing until you cancel your election.
Do I have to send anything with the claim form?
Typically yes. You should submit receipts for the month or week and a signed reimbursement claim form to ASIFlex. If receipts are not available, you must indicate this on the claim form.
What documentation must accompany my claim in order to receive reimbursement?
Federal Regulations require you to provide a written statement from the provider of the service that supports your claim if the provider provides receipts or other documentation in the ordinary course of its business. If the provider does not provide receipts or other documentation, explain the situation in the column labeled "Attach proof of expense or explain why it is not available in the ordinary course of business." If the provider normally provides documentation such as receipts you must provide a copy with your claim.
The documentation must show:
The name provider;
The date or range of dates of parking, travel, or payment. You may not claim expenses for more than one month on one line;
A description of the service provided (for example, "April 2011 parking" or "May 2011 bus fare"); and
The cost of the service or the amount paid.
Are there any costs to enroll in this program?
Yes, if you enroll in the mass transit program and are receiving vouchers in the mail or are signed up for a different program and do not sign up for direct deposit, you will be assessed a fee of $1.70 per pay period. If you are not receiving vouchers in the mail and are signed up to receive reimbursements via direct deposit, you will be assessed a per pay period fee of $1.20.
Whom do I contact with questions or for more information?
Please contact ASIFlex directly for additional information regarding the benefits of the Pre-Tax Commuter Benefit Program.
Phone: (800) 659-3035