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LA County Commuter Benefit Plan and Transit Subsidy- Still Available!

DON’T MISS OUT! SAVE MONEY NOW!

LA COUNTY COMMUTER BENEFIT PLAN

The County provides a transportation benefit through WageWorks, Inc. called the Commuter Benefit Plan (CBP) which allows employees to save money by using pre-tax dollars to pay for these commuting expenses: bus/rail passes, transit vouchers, Metrolink passes, Transit Access Pass cards (TAP cards), vanpool fees, and parking. The CBP also offers automatic payment and delivery features for these purchases.

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Through the CBP and according to IRS rules, County employees can contribute up to $265 per month in pre-tax payroll deductions to purchase transit products and up to another $265 per month to pay for parking expenses. Thus, if an employee has qualifying eligible expenses, they could make a pre-tax contribution of up to $530 per month.

You do not have to pay Federal or State taxes or the Health Insurance Tax (HIT), if applicable, on the money you use to pay for eligible transportation and/or parking expenses under the CBP, thus reducing your overall taxable income. Eligible expenses that exceed the IRS limit are deducted from your paycheck on an after-tax basis.

An employee can enroll, or suspend their participation, in the CBP any month of the year. The monthly deadline for placing an order is the 10th of the month (including weekends or holidays). Employees joining the CBP must pay for orders two months in advance. For example, an employee placing an order by September 10th will receive that order by November 1st.

Once you enroll in the CBP and place a transit order by the monthly deadline (the 10th of every month), your payroll deduction will appear on the end of the month paycheck. There is an administrative fee of $3.74 per month, taken as an after-tax deduction, which is paid by employees for plan participation.

SPOTS STILL AVAILABLE —SIGN UP NOW FOR THE $70 TRANSIT SUBSIDY AVAILABLE for SEIU 721 REPRESENTED EMPLOYEES

If you are represented by SEIU Local 721, you may be eligible to receive a $70 subsidy towards your commuting expenses. You are eligible for the subsidy if you purchase a monthly transit pass for at least $70 through the Commuter Benefit Plan, and you are not currently receiving the Civic Center monthly transportation allowance.

You can join the CBP by using WageWorks’ online enrollment at www.wageworks.com or by calling WageWorks at (877) 924-3967, Monday – Friday, 5am to 5pm Pacific Time.

 

Categories: Los Angeles County