FlexRight Commuter Assist

Even though it’s a separate plan, FlexRight Commuter Assist works a lot like our Flexible Spending Accounts for Health and Dependent Care expenses. There are a couple of positive differences: there is no “use it or lose it penalty” and employees may come into and out of the plan as they desire. Enrollment is not limited to one annual open enrollment period and employees do not need to make a 12-month commitment.
The plan actually consists of two options:

  1. Parking
  2. Mass Transit & Van Pooling

Participants may select either option or both.

Plan Overview

  • Before the start of the plan year, individual employees elect to set aside a certain amount of pre-tax salary to cover qualified costs to commute to work and park their vehicle while they work. The employee will designate an amount (up to $115 per month in 2008) for mass transit expenses and a separate amount (up to $220 per month in 2008) for parking expenses. These accounts must be kept separate, and funds cannot be transferred between them.
  • The employee pays the provider using the FlexRight Benefits Card, or pays with personal funds and files a request for reimbursement. Reimbursements may be filed either online, for faster service, or by paper form within 45 days of the date of service. Any amounts remaining in the employee's reimbursement account roll over from month-to-month and year-to-year.
  • This benefit is available to employees and even officers of the corporation since there are no non-discrimination rules. However, sole proprietors, independent contractors, partners and two-percent shareholders in and S-corporation are not eligible.

Depending on the state, participants may also eliminate the state and local income taxes on earnings set aside into their Commuter Assist plan. This table below shows the tax savings at various taxation percentages if a participant chose to set aside the maximum monthly allowable contribution of $335 ($115 in transit and $220 in parking).

Tax Rate Annual Salary Deduction
($335 monthly for 12 months) 		Tax Savings
22.65% $4,020 $910
35.65% $4,020 $1,433
37.45% $4,020 $1,505
41.05% $4,020 $1,650