QUALIFIED TRANSPORTATION BENEFITS

QTB Frequently Asked Questions

from EBS/Atlanta

What is a Qualified Transportation Reimbursement Plan?

It's a voluntary plan that allows to pay for "qualified" work-related parking expenses and commuting expenses on a tax free basis. The Qualified Transportation Reimbursement Plan administered by EBS/Atlanta is called "CommuterChoice", a nationwide initiative encouraging employees to consider using a broad range of commuting options. This means expanding your choices to get to and from work in addition to driving yourself. Such as using public transporation, a bicycle, or vanpools. Initiated by the U.S. Department of Transportation (DOT) and the U.S. Environmental Protection Agency (EPA), the goal of CommuterChoice is to expand the availability of commute options as a viable means of addressing growth-related issues impacting communities. In return, you can take advantage of significant tax savings!

How does the CommuterChoice Plan Work?

You sign an election form that allows your employer to make payroll deductions equal to the cost of your parking and/or commuting expenses. When those expenses are incurred, you simply request reimbursement of the expenses, in writing, with appropriate proof of payment.

Is there a limit to the amount I can be reimbursed through the Plan?

Yes. The limit is $230.00 per month for qualified parking expenses and $230.00 per month for qualified vanpooling or transit expenses. These limits are set by the Internal Revenue Service (IRS) and adjusted annually.

What are "Qualified Parking Expenses"?

Qualified Parking Expenses are work-related expenses you pay for parking your vehicle near your employer's place of business, or in a parking lot from which you commute to work by vanpooling or carpooling.

What are "Qualified Vanpooling Expenses"?

Qualified Vanpooling Expenses are work-related expenses you pay for transportation between your residence and work, but only if transportation is provided in a "commuter highway vehicle", defined as a highway vehicle with a seating capacity of six or more adults not including the driver. This can include transportation provided by the employer, or by a company in the business of vanpooling.

What are "Qualified Transit Expenses"?

Qualified Transit Expenses include any pass, token, farecard, voucher or similar item that entitles you to work-related transportation (or transportation at a reduced price) on mass transit facilities, or provided by an entity in the business of transporting persons, if such transportation is provided in the type of highway vehicle used for vanpooling.

If my neighbor and I ride together in my neighbor's car, and I pay half of the gas expenses, can I use the vanpooling or transit benefit to receive reimbursement?

No. Carpooling expenses are not reimbursable. Please remember, there are restrictions as to what constitutes vanpooling and mass transit.

My spouse pays for parking as well. Can those expenses be reimbursed under my plan? No. In order for expenses to be reimbursed, they must be the expenses of the employee. In order for your spouse's expenses to be reimbursed, his or her employer would need to establish a Qualified Transportation Plan for its employees.

Can I use this benefit for the tolls I pay to commute to work?

No. There is no provision specifically for tolls.

Can I use the parking benefit in conjunction with vanpooling?

Yes, with each reimbursable benefit subject to its own applicable monthly maximum as described above.

How do I receive reimbursement for these expenses?

When you incur a parking, vanpool or transit expense that qualifies for reimbursement, you simply complete a special CommuterChoice Claim Form and mail or fax it to EBS/Atlanta.

How long do I have to wait for reimbursement?

EBS/Atlanta processes claims daily and issues checks on the reimbursement intervals selected by your employer.

Can I use the SmartFlex™ Debit Card to pay my Qualified Transportation Benefits?

Yes. You can use your SmartFlex™ Debit Card at any parking or commuter facility that accepts Visa.

How do I get reimbursed for transit costs, since I don't receive a receipt for the money I pay to ride the bus each day?

The request for reimbursement form allows you to certify these expenses by your personally signing the reimbursement request form.

Do I have to submit a receipt to be reimbursed for my parking and vanpooling expenses?

If your parking facility issues receipts, you must submit a receipt with your Claim Form, otherwise you can simply sign your claim form certifying that the parking facility does not issue receipts. Vanpooling expenses require a written receipt.

I always pay my parking bills by check. Can I turn in a copy of my canceled check instead of a receipt and receive reimbursement?

No. Expenses must be properly substantiated. Receipts and invoices should contain the provider's business name and address.

Do I have to sign up for this program when I become eligible, or can I sign up at any time?

You can sign up at any time, provided the election is made on a prospective basis.

Once I sign up, am I obligated to remain in the plan for the remainder of the year?

No. You can revoke an election at any time provided it is on a prospective basis.

If my expenses increase or decrease during the year, can I change my election?

Yes, provided the change is made on a prospective basis. Retroactive changes or elections are not permissible.

Are benefits under theCommuterChoice program subject to taxation at any point?

No. Reimbursements made to you for qualified parking, vanpool or transit expenses are not subject to federal wage or Social Security wage withholding.

Are these benefits part of a cafeteria plan?

No, CommuterChoice is a benefit separate and apart from benefits which you may have through your employer's Flexible Benefits Plan.