Commuter benefits are an employment benefit provided by your employer for travel between your home and place of employment. When your employment with your current employer ends, you'll lose access to your current commuter benefits account and any remaining funds on the official date of your termination. Any unused commuter benefits funds will be returned to the company's bank account.
Per IRS regulations, your employer can't refund your unused commuter benefits funds back to you. However, you can submit claims for eligible expenses incurred during employment for up to 90 days.
- Expenses cannot be older than the claim year.
- Expenses incurred after your employment ends are not eligible for reimbursement.
For more information on the regulations, please see Section 1 .132-9(b) Q&A 14( d ) of this IRS document that states:
Compensation reduction amounts not refundable. Unless an election is revoked in a manner consistent with paragraph (c) of this Q / A –14, an employee may not subsequently receive the compensation (in cash or any form other than by payment of a qualified transportation fringe under the employer’s plan).
Thus, an employer’s qualified transportation fringe benefit plan may not provide that an employee who ceases to participate in the employer’s qualified transportation fringe benefit plan (such as in the case of termination of employment) is entitled to receive a refund of the amount by which the employee’s compensation reductions exceed the actual qualified transportation fringes provided to the employee by the employer."
Terminated workers may continue to submit claims in the dashboard in the Commuter Benefits app up to 90 days after their termination date.