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COVID-19 Developments: BASIC is committed to providing our clients and their employees with the very best service possible during this difficult period. We encourage Employers and Participants to take advantage of our e-technology options. Employers and Broker Partners, stay up-to-date with the latest COVID-19 news by checking out our BASIC Blog.

Commuter Accounts

Administration

Help your employees save money coming and
going to work by offering commuter benefits!

Commuter Benefits features that benefit you:

Guaranteed compliance

Increased employee satisfaction

BASIC Commuter Administration allows employees to select tax-free parking and mass transit benefits, much like a cafeteria plan, saving you and your employees thousands of dollars in taxes every year. Choosing BASIC as your administrator means you’ve selected the best. Request a proposal today!

With BASIC Consumer Driven Accounts (CDA), benefits just got smarter. Learn about the exciting features of the BASIC Card & MyCash and manage your CDA benefits in the BASIC Benefits mobile app!

Transit

Participants choose a monthly election amount (up to the IRS maximum) to use pretax funds toward transit expenses. They use their BASIC Card to purchase transit fare, tokens, or vouchers at approved payment terminals. Unlike other pretax accounts, participants can change or stop their transit account election at any time.

Parking

Participants use pretax parking funds at eligible parking locations near the employer’s location or where the employee commutes via carpool, vanpool, or other commuter highway vehicle. They can use their BASIC Card for easy payment or pay out-of-pocket and submit a manual reimbursement. Like a Transit Plan employees can change the month elections each month as their needs change.

We’re happy to help

Dedicated account managers
The average hold time is fewer than 30 seconds
Our customer service representatives are readily available for participant questions

Commuter Benefits Regulations

Commuter benefit plans are part of the IRS Section 132. Commuter Accounts are an employer-sponsored benefit that allows employees to set aside money on a pretax basis for qualified transit/commuter passes, parking, vanpooling, and commuter highway vehicles.

The IRS regulates what services or purchases are eligible under Section 132. Commuter benefits have a maximum contribution limit under Section 132. The IRS sets maximum monthly limits for both parking and transit. Current IRS limits can be found at our Regulations Page.

Eligible Expenses:

Transportation to or from work via subway, train, bus, or ferry
Parking at or near the office at meters, garages, or lots
Parking at a commuter lot where commuters transfer to mass transit
Vanpool fees

Mandatory Commuter Benefits Ordinances:

Seattle, WA
New York City, NY
Berkeley & Richmond, CA
San Francisco Bay Area, CA
Washington, DC
New Jersey – the first statewide ordinance
For details visit our Commuter Benefit Ordinance page

Unlike Flexible Spending Accounts, employees can change their election amount at any time during the plan year.
The IRS ruled (Revenue Ruling 2014-0011) that transit stated cash reimbursements are no longer compliant. Transit expenses must be purchased with a benefits debit card or through a custom platform for commuter fares.
A plan document is not required for Commuter Plans; however, the rules, regulations, and administrative processes all must be provided to participants. Some form of summary documentation is needed.
Commuter Plans are not required to pass discrimination tests. An employer can offer parking, transit, and vanpooling benefits at one work location while only offering parking benefits at another location.
COBRA and HIPAA do not apply to Commuter Plans.
ERISA doesn’t apply to Commuter Plans; however, state laws may apply.
Employers need not file a Form 5500 for a Commuter Plan.

Give your employees the ability to leverage pretax savings, request a Commuter Accounts proposal today!

BASIC Consumer Driven Accounts (CDA)

A cutting edge integrated system allowing employers and participants to manage all their benefit plans with one card, one website, and one mobile app.

Employers can choose to enrich their benefits package with a wide range of healthcare benefit accounts like FSA, Simple HRA, or HSA.
Combine with a variety of available benefit accounts such as Dependent Care, Commuter, Wellness Rewards, Employee Crisis, and Education Reimbursement.