How are commuter benefits accounts funded?
Employees choose the monthly contribution amount for their commuter benefits accounts in Zenefits.
The IRS sets limits on allowable pre-tax contributions. Amounts over these limits can be made, but these amounts are taxed.
- Contribution amounts are deducted from employee paychecks. Deduction amounts are spread across each month.
Monthly contribution amounts become available on the 1st every month.
Any unused funds will roll over into the next month. Funds also roll over from year to year, until the plan itself is canceled. "Use it or lose it" rules do not apply to commuter benefits.
If an employer is contributing to employee commuter benefits accounts, the same amount must be contributed to all employees.
The funds stay in the company's account until the employee uses their card or submits a claim.
During the commuter benefits plan setup, employers have the option to contribute to their employees' accounts. However, the same IRS limits apply to the combined employer and employee contributions.
Thank you for the feedback!