How
much does it cost to participate in TransitChek?
The cost of the program is a 2% service fee on the total cash value of vouchers
ordered, plus a $12 shipping and handling fee per order. If you offer TransitChek
through pre-tax payroll deductions, you'll access FICA payroll tax savings of
more than 7%—so the program pays for itself!
| Example:
|
| Dollar
value of vouchers ordered |
$700 |
| 2%
service fee (2% of $700) |
$14 |
| Shipping
and handling |
$12 |
| TOTAL
PAYMENT AMOUNT |
$726 |
Can
I sign up if only one or two employees will participate?
Yes! There's no minimum number of participants or order
amount.
I
recently placed an order for TransitCheks. When will
the vouchers arrive?
Normally, vouchers arrive within
two weeks of receiving payment. Allow one extra week
if you are a first-time TransitChek participant.
For information about the status of your order, call
Accor Services
at 800.531.2828. For general questions
about the TransitChek program, call 215.592.1800.
Who
participates in TransitChek?
In the Delaware Valley, nearly 700 organizations participate
in TransitChek, including local branches of multi-national
firms, non-profits, law firms, medical offices, and government
agencies.
Is TransitChek like a Flexible Spending Account?
TransitChek is NOT a flexible spending account benefit.
Unlike flexible spending accounts, there's no use-it-or-lose-it
penalty with TransitChek. TransitChek is authorized as
a tax-free benefit under Section 132(f) of the U.S. Internal
Revenue Code. Commuting costs paid for through TransitChek
are not subject to federal income and FICA taxes. Employees
can receive up to $120 a month or $1440 a year in TransitChek
benefits. There is also no requirement to prepare a plan
or final report, as with Section 125 cafeteria plans.
Can
TransitCheks be used to pay for parking?
You may opt to offer an additional $20 TransitChek voucher
to employees that participate in SEPTA's Permit-by-Mail
program. This additional parking benefit is available
ONLY when it is combined with a SEPTA monthly trail pass
purchase through the Permit-by-Mail program.
What
is the administrative burden of offering TransitChek?
TransitChek is easy to administer. Simply complete the Order
Form and mail with payment. Vouchers can be
distributed to employees along with paychecks. If you
are offering TransitChek through employee-paid payroll
deductions, instruct your payroll or accounting department
to coordinate a pre-tax payroll deduction for TransitChek
under Section 132(f) of the U.S. Internal Revenue Code.
If you are a large employer, have multiple locations,
or simply want added convenience, consider signing up
for our premium TransitChek Select service. TransitChek
Select cuts benefit administration down to
just minutes each month with direct delivery of vouchers
to employee home or office addresses and optional online
ordering.
What
tax savings are associated with TransitChek?
When
you offer TransitChek through pre-tax payroll deductions,
commuters can save more than $400 a year and employers
save an average of $90 a year for each employee that participates.
Employees can set aside up to $115 per month from federal
income and FICA taxes, and employers save on the matching
FICA taxes. The cost of the program is tax-deductible.
What
if my company's headquarters are not located in the
area?
No problem. TransitChek can be provided to employees
in this region even if benefits administration is not
handled at your company's local office.
For
more information, contact the TransitChek Employer
Outreach Specialist at TransitChek@dvrpc.org or
215.592.1800.
|