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How do Commuter (Transit and Parking) benefits administration and elections work?

Understand how Benepass manages commuter benefits elections, payroll file exports, and contribution options for Transit and Parking programs

Updated over 2 months ago

Overview

Benepass supports benefits administration for U.S. pre-tax Transit and Parking benefits. This allows employers to collect, manage, and fund employees’ elections for commuter benefits.

How it works

You can choose to offer:

  • Transit benefits

  • Parking benefits

  • Both

All employees who are eligible for these benefits will see enrollment options on their Home and Accounts pages.

Employees are able to make or update their elections between the 2nd and 15th of each month, and changes take effect on the 1st of the following month.

Benepass sends:

  • A welcome email for each benefit at launch

  • Monthly reminders when the election window opens

  • A confirmation email when employees update their election

Reporting cadence

On the 16th of each month, Benepass will automatically: export a report of all elections and notify your team via email that the file is available. Separate files for Transit and Parking can be provided upon request.

If your payroll system can accept election files, you are able to upload the file exported from Benepass directly into your system.

If your system requires deduction files, you will need to calculate the deduction amount by dividing each employee’s monthly election by the number of pay periods in the upcoming month.

Payroll integration

Your team has the choice to contribute employee funds either:

  1. Via election - in full on the 1st of the month.

  2. Via deduction - based on the date and value specified by each employee payroll deduction.

Employer contribution options

You can allow:

  • Employee elections only

  • Employer contributions only

  • Both employer and employee contributions

The combined total cannot exceed the IRS maximum, though you may set a lower limit.

Additional notes:

  • Employees can receive employer contributions even with a $0 election.

  • Elections can only be updated between the 2nd–15th of each month.

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