Commuting Made Easy with P&A

Do the majority of your employees have monthly out-of-pocket parking and transit expenses to get to and from work? P&A offers a commuter plan that allows your employees to set aside pre-tax dollars to use for these expenses.  This gives both you and your employees a great opportunity to save on state, federal and FICA taxes.

Commuter graphic for blog postHere’s how the plan works.  Your employees estimate how much they spend a month on work-related parking and transit expenses and elect to have that amount withheld pre-tax.   So, say an employee sets aside $100 for transit expenses and $50 for parking expenses every month. Your company runs payroll twice a month; therefore, the employee has $75 withheld pre-tax every paycheck. That money is put into a P&A commuter account which the employee can access to pay for monthly parking and transit expenses.&A offers a debit card with the commuter account. Per IRS guidelines, all transit passes (bus, subway, train, etc.) must be purchased with a terminally restricted debit card and are no longer eligible for reimbursement any other way.  P&A’s debit card technology meets this requirement, allowing transit passes to be purchased only at authorized transit authority terminals.  This ensures that the money the employee sets aside is only used for transit expenses.

Monthly parking expenses are reimbursed on the honors system, meaning no receipt or proof of purchase is necessary to submit a parking claim. The IRS understands that some employees use metered parking or park in lots that do not offer receipts. P&A’s website allows participants to log in and enter their monthly parking expenses easily.

At P&A, we take the burden of executing these plans off your shoulders. We provide extended customer service hours – both over the phone and online.  Our participant portal, My Benefits, allows for self-service on the most common questions like, “what’s my balance,” “what’s the status of my claim,” etc. – so you don’t have to play the middle man between us and your employees.

You can easily setup a Commuter Plan with P&A Group or request more information. 

Coming Soon: P&A Benefits Card To Be Accepted at uberPOOL, Lyft Line & Via

Personal perspective view of hand holding phone ordering Uber ride

P&A Group’s Benefits Card vendor, Alegeus, has just announced that uberPOOL, Lyft Line & Via fare can be paid for with the P&A issued Benefits Card.  This new feature will provide greater convenience for commuter participants in the pre-tax Transit program!  Previously, these fares were not authorized with the Benefits Card and therefore unable to be used under the Section 132 Transit program. Paying for uberPOOL, Lyft Line and Via fare with the Benefits Cards is currently restricted to cities who are eligible to leverage these services.  The following cities currently leverage these services:

uberPOOL

Atlanta, GA

Boston, MA

Chicago, IL

Denver, CO

Las Vegas, NV

Los Angeles, CA

Miami, FL

New York, NY

Philadelphia, PA

San Diego, CA

San Francisco, CA

Seattle, WA

State of New Jersey

Washington DC

Lyft Line

Boston, MA

Miami, FL

New York, NY

Seattle, WA

Via

Chicago, IL

New York, NY

Washington DC

This list is constantly growing, so please check the Uber, Lyft and Via websites for updates.  We look forward to working with our client and broker partners in adding this feature to eligible Transit Plans.