Section 132 – Transportation & Parking Accounts

A Section 132 Plan allows your employees to use pre-tax dollars to pay for work-related parking and commuting expenses. As the employees save money, the company relieves a growing cause of employee dissatisfaction. At the same time, the employer reduces the companies’ payroll tax expense.

Two Programs are Available:

Parking Reimbursement Account

Employees can set aside up to $190 of pre-tax money per month to pay for qualified work-related parking expenses.

Transportation Reimbursement Account

Employees can use up to $100 a month in pre-tax dollars to pay for commuting expenses – including mass transit and /or van pooling expenses.

How The Programs Work:

Section 132 works just like any pre –tax reimbursement account (such as Section 125 without many of the restrictions). The program is more flexible because it operates on a monthly basis. This means employees may enroll throughout the year as long as they act before the monthly deadline date to make sure they become effective by the 1^st of the following month. There are no “use it or lose it” annual budgets to worry about.

Easy Enrollment: Once enrolled, employees set a monthly election amount. Employees can change the amount of their contribution simply by completing a new election form and submitting it before the monthly deadline. All changes will be effective on the 1^st of the following month. Seaman & Co. is online and forms completion is always just a click away.

Savings: Employees can expect tax savings between 23% and 37% of their elected amount because they don’t pay federal, state income taxes and FICA. (Amounts vary depending upon your tax bracket.) And every dollar saved will reduce the employer’s federal payroll taxes.

Money Savings For Employees.

Tax Savings For You.

No Risk for the employer

Employer tax savings is often more than enough to cover administrative costs

Turnkey administration from Seaman & Co.

A money-saving benefit for employees

Commuting and/or parking expenses are a reality of the American workplace. Nor you can help minimize the cost to your employees with a Section 132 Program from Seaman & Co.

For information or personal assistance, please contact our Benefits Department by clicking HERE.

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