Similar to Cafeteria Plans, pre-tax Transportation Plans benefit both employees and employers. Employees are allowed to use pre-tax payroll deductions in paying for parking and mass transit expenses. Consequently, employees benefit from a reduction in payroll taxes allowing them to use their tax savings to pay a portion of their parking and mass transit expenses. Employers benefit by offering a pre-tax Transportation Plan to employees because it reduces employer payroll taxes while providing an additional benefit to employees.

Employees may make pre-tax payroll deduction contributions into one or more of the following:

• Parking Expense Reimbursement Plan
• Mass Transit Expense Reimbursement Plan
• Parking/Mass Transit Expense Conversion Plan

Parking Expense Reimbursement Plan

An employee may request reimbursement from pre-tax payroll deduction contributions for daily or monthly parking expenses incurred at or near the employer's business premises or location from which the employee commutes to work by mass transit or vanpooling.

Mass Transit Expense Reimbursement Plan

Employees are allowed to be reimbursed from their pre-tax payroll deduction contributions for mass transit expenses related to commuting to work.

Parking/Mass Transit Expense Conversion Plan

This plan enables employees to make pre-tax payroll deductions to pay for employer provided parking or mass transit.