Frequently Asked Questions

What mass transit expenses are eligible to be paid under a Commuter Benefit Plan (CBP)?

Workplace mass transit expenses are eligible to be paid under a CBP if they are in a commuter highway vehicle (e.g. vanpool) or on mass transit facilities (e.g. bus, train, subway, ferry), and if such commuting is in connection with travel between a residence and place of employment. This includes expenses for any pass, token, farecard or similar item.

Note: A commuter highway vehicle means any highway vehicle with a seating capacity of at least six (6) adults (excluding the driver); and of which at least eighty percent (80%) of the mileage for a year is reasonably expected to be used:

  • for purposes of transporting employees in connection with travel between their residences and their places of employment; and
  • on trips during which the number of employees transported for such purposes is at least one-half (1/2) of the adult seating capacity of such vehicle (excluding the driver).
  • At this time, the updated UberX Share and Lyft Share Rides programs no longer meet the IRS requirements for a Commuter Benefit Plan and are no longer eligible expenses.

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