Transportation Plans as a Fringe Benefit
(This question came to me from an HR practitioner anonymously. - Steve)
I have a series of questions regarding qualified transportation plans and appreciate any feedback you can give me.
- How does your company handle transportation plans using pre-tax dollars under IRS Section 132?
- How often should a Summary Plan Description for this fringe benefit be updated?
- What does this process look like?
Thanks for your help.
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Most spending account (FSA/HSA) providers also offer administration for transportation benefits. Here is a link to the IRS website outlining Sec. 132 benefits. https://www.irs.gov/government-entities/federal-state-local-governments/qualified-parking-fringe-benefit
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Here is a great compliance guide to your questions!
And to answer the second question directly, your Summary Plan Description is not required by law and can be updated by the employer and their discretion.
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