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How it Works
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An employee elects an amount to set aside from each month for the Parking Reimbursement Plan which cannot exceed $205 (as of 2006). The amount of money the
employee elects for the account is deducted from his/her gross pay before federal and state income and FICA taxes are calculated. These deposits are not
considered current taxable income and, therefore, do not appear on the employee's W-2 form as taxable income.
After the employee pays a reimbursable expense, he/she submits a claim form to Combined Services LLC with an itemized bill or receipt (when applicable)
via mail, the internet, fax or in person. Eligible expenses are reimbursed on a weekly basis with tax-free dollars.
Our qualified staff is available to assist you in implementing a Parking Reimbursement Plan that meets your needs. Please contact us for more information.
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How Much Money Can I Use?
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Up to $205 pre-tax per month for qualified parking which includes:
| • | Metered Parking |
• | Parking Garages |
• | Parking Lots |
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What is Qualified Parking?
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| • | Parking provided to an employee at or near the business premises of the employer |
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| • | Parking provided to an employee on or near a location from which the employee commutes to work by mass transit, vanpooling, in a commuter highway vehicles, by carpool, or by any other means; and |
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| • | Parking provided to an employee for which an employer pays (directly to a parking lot operator or by reimbursement to the employee), or parking that an employer provides on premises that it owns or leases. |
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What Are The Benefits?
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Employers: The clear benefit for employers is the FICA savings for each pre-tax Parking Reimbursement Account that is set-up and the satisfaction
of employees who have been enabled to use pre-tax money to pay for their at-work parking expenses. Also, the IRS, allows the employer to design a
Parking Reimbursement Plan that can set the parameters on minimum amounts to participate, types of parking that will be considered reimbursable
and type of proof required for reimbursement.
Employees: The Parking Reimbursement Plan allows the employee to participate from month to month without having to re-enroll each year. Funds that
were unused from a prior month can be carried forward. However, the reimbursement in any given month cannot exceed the $205 limit.
The employee pays for at-work parking expenses with pre-tax dollars that reduce federal and state income taxes, and Social Security and FICA withholdings from their pay.
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Expectations
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Employers: The clear benefit for employers is the FICA savings for each pre-tax Parking Reimbursement Account that is set-up and the satisfaction of employees
who have been enabled to use pre-tax money to pay for their at-work parking expenses. Also, the IRS, allows the employer to design a Parking Reimbursement
Plan that can set the parameters on minimum amounts to participate, types of parking that will be considered reimbursable and type of proof required for reimbursement.
Employees: The Parking Reimbursement Plan allows the employee to participate from month to month without having to re-enroll each year. Funds that
were unused from a prior month can be carried forward. However, the reimbursement in any given month cannot exceed the $205 limit.
The employee pays for at-work parking expenses with pre-tax dollars that reduce federal and state income taxes, and Social Security and FICA withholdings from their pay.
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