Transportation Benefit

The Section 132 Transportation Benefit from Manley Services allows your employees to set aside pre-tax dollars to pay for work-related parking, transit passes, and van pooling. The elected amount is deducted from their gross income prior to any federal, state, and FICA calculations. As a result, they save on taxes by reducing their taxable salary. Because your total payroll is smaller, you save significantly on FICA taxes.

How the Plan Works

• Employees contribute money for work-related parking or transit expenses up to the maximum allowed by the IRS.

• Elected amounts are sent to Manley Services on a per-payroll basis.

• As employees pay for qualified expenses, they simply submit a reimbursement request with proof of payment to Manley Services.

• We issue a reimbursement check directly to the employee as soon as funds are available in their account.

• Funds remaining in the plan at the end of the year may be rolled into the next year.

Getting Started

Plan set-up is quick and simple. Just contact Manley Services to get started. We’ll provide enrollment forms and a summary of the plan for easy communication. You give the forms to your employees, they make their elections and return them to human resources, and then payroll sets up two new deduction codes (one for parking and one for transit expenses). You may file claims after the first payroll reduction has occurred.

Ongoing Administration

As the employer, you are responsible for reporting new elections, changes in elections, and termination dates. You will also be in charge of submitting employees’ pre-tax dollars to Manley Services.

Employer Reporting

We send you a quarterly report of participants’ year-to-date account information, including contributions, claims processed, and claims paid, along with their available balances.

Potential Tax Savings

Participating employees can save approximately a quarter on every dollar allotted for the plan (federal, state, and FICA). Those in a higher federal tax bracket will save even more.

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