Transit & Parking

A transit plan helps your employees cover commuting costs with pre-tax income. We make it easy to offer this benefit to your employees.

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How it works

The daily commute to and from work can put a financial strain on your employees. Whether they drive their own vehicles and have to pay for costly parking expenses, or take public transportation and fork out money for a pass, the costs can really add up. A transit and parking plan from isolved Benefit Services is the perfect solution for this common problem, because it allows your employees to set aside funds on a pre-tax basis to pay for qualified transportation expenses.

Transit plans are easy to set up and use, and participants will receive debit cards that allow them to pay for the expenses with the funds they set aside, instead of having to wait for reimbursement. The IRS-imposed maximum monthly reimbursement amount for 2022 for parking, transit passes, and/or vanpooling is $280.

Transportation plans cover:

  • Qualified parking – parking expense near place of work or point of commute
  • Qualified parking – parking expense near place of work or point of commute
  • Vanpooling – in a commuter highway vehicle

How Transit and Parking Plans Work

  • Employer adopts Section 132 Transportation Reimbursement Plan (Documents prepared by isolved Benefit Services)
  • Employees enroll and authorize pre-tax deductions from pay for transit expenses (isolved Benefit Services provides online enrollment and enrollment materials)
  • Employees must purchase transit passes at terminal-restricted vendors using debit card
  • Transit pass purchases will auto-adjudicate 100% of the time which eliminates the requirement to provide documentation
  • Account and activity may be monitored by iFlex smartphone app
  • Website access to monitor account
  • Monthly reports to employer

IRS Announces 2023 Tax Benefit Changes

Transportation Fringe Benefit 2022 2023
Parking $280/month $300/month
Mass Transit $280/month $300/month

Client issues are just non-existent with isolved Benefit Services. Even if there is an issue, you guys just take care of it.
– Jeff Hoerle, Priority Health

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