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New 2008 Debit Card Regulations: |
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Transit & Parking
As gas prices continue to concern commuters, many employers are finding Transit and Parking benefit plans are an easy way to subsidize their employee’s transit and parking costs. This cost-effective plan saves money for both you and your employees.
Under current rules, the Transit and Parking benefit plan is not considered income and is, therefore, tax-free to employees. It’s also excluded from wages for FICA purposes and is deducted as a normal business expense.
Work-related parking and transit expenses covered in the plan include:
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Vanpooling - transportation in a commuter highway vehicle for travel between the employee’s residence and workplace
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Transit passes - pass, token, fare card, voucher or similar item used to travel on a mass transit service to the workplace (i.e., subway, bus, train, etc.).
- Parking - work-related parking near the workplace or near the location where mass transit or vanpool is used
There are limits on the amounts commuters can use for each of these.
Proven Processes
ProcessWorks provides efficient, accurate plan maintenance and recordkeeping services.
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Implementation and Plan Design
- Plan specific legal documents
- Plan Policy
- Adoption resolution
- Determination of employee eligibility
- Plan design parameters
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Communication
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Master employee enrollment kit
- Enrollment form
- Enrollment instructions
- Claims instructions
- Other informational pieces
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Administration covers an extensive list of services offerings which ensures the successful functioning of all our processes.
- Claim reimbursements offered on a weekly, daily or same-day basis
- Direct deposit reimbursements and advices
- Paper checks mailed to employees’ homes (postage included)
- 24/7 account access via Internet
- Automatic e-mail notification of claims receipt or reimbursements
- Fourth quarter account balance statement for active participants
- No check minimum (unless requested)
- Check and deposit advice stock included
- Electronic or paper submission of new hires, terminations and other election changes
- Electronic transfer of funds for payment of administration invoices
- Toll-free Customer Care Center support
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Funding
- MBI Benefits Card™
- Employer’s bank account information is laser scanned onto ProcessWorks’ check stock
- Reimbursements are directly drawn from the employer-held account requiring no transfer of funds
- Check registers faxed or emailed weekly showing all reimbursement activity
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Employer Reporting
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Thorough management reports
- Online, real-time reports – detailed summaries and payment reports
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Compliance
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Notification and inclusion of IRS changes
- Update of legal policy statement (if required)
- No Form 5500 is required – legal plan document and adoption resolution are adequate and are provided.
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