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A Commuter Benefits Plan allows you to use "pre-tax" dollars to pay for qualified employment-related transportation and parking expenses. To participate in the plan, estimate your qualified transportation expenses for the year. Complete an Election Form indicating your annual estimated expenses and give it to your employer. Each pay period, your employer will deduct your elected pre-tax amount from your paycheck and deposit the amount into your Commuter account. You can then use the funds directly from this account to pay for your eligible transportation expenses.
There are three qualified transportation benefits:
- Qualified Parking- Expenses for parking at or near the employer's business premises or parking at or near a location from which an employee commutes to work by mass transit, vanpooling, carpool, etc.
- Transit Passes- Expenses for any pass, fare card or similar item that entitles the employee to transportation on a mass transit system to and from work.
- Vanpooling- Expenses for transportation between the employee's place of residence and place of employment in a commuter vehicle that has a seating capacity of 6 persons or more (not including the driver) and where at least 80% of the mileage used for the year is for the purpose of transporting employees between their residences and places of employment.
WEB-BASED COMMUTER BENEFITS
A Commuter Benefits program allows employees to use
pre-tax dollars to offset carpool, vanpool, and public transit expenses. These plans may cover out-of-pocket parking fees, transit passes/tokens/vouchers, other mass transit expenses, or even an employee-sponsored vanpool.
ACCESSING YOUR TRANSPORTATION FUNDS
With MGIS the Benefits card, accessing your Commuter funds is easier than ever. You can use the MGIS Benefits Purchasing Card to pay for your qualified expenses at the point of service wherever VisaŽ and MastercardŽ are accepted — simply give the vendor your card to pay for the service. The vendor will swipe the card and the funds come directly out of your Commuter account. If the vendor doesn't accept Visa or Mastercard you will need to pay for the service and submit a hard copy Transportation Reimbursement Request Form along with your receipts to MGIS. =
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Consumer-Directed Healthcare Administration Specialists