$230 Cap Update: What You Need to Do
Please see below for an important notice from TransitChek:
“Dear Valued TransitChek® Customer,
On September 15th we sent you a communication about the impending reduction of the current pretax transit benefit cap from its current level of $230 per month to its previous level of $120 per month if Congress does not act before December 31, 2011.
TransitCenter is working to make these changes seamless for you and your employees. Below are the steps we are taking on November 30 to ensure a smooth transition to a new transit cap:
- For employees enrolled for the TransitChek Premium MetroCard® – No change
- For employees enrolled for CashBack and Vouchers, TransitCenter will automatically decrease monthly transit benefits higher than $120, down to $120 for the January benefit month.
- For employees enrolled for the TransitChek QuickPay® Prepaid Visa® Card, there is no change if their pretax benefit is $120 or less. If their pretax benefit is in excess of $120, TransitCenter will automatically decrease the pretax portion to $120 and create or increase the post-tax amount accordingly, to ensure the total contribution stays the same.
REMINDER: You will need to make the corresponding changes, if necessary, to the amounts you deduct from your employees’ paychecks on a pretax and post-tax basis starting with the January benefit month.
Please understand that if the pretax cap is reduced to $120, you may not deduct more than $120 pretax for the January benefit month even if that deduction is taken in 2011. The change in the cap does not affect the amount you may deduct on a post-tax basis.
Employees should not make any changes to their benefit amount due to changes in the pretax cap. TransitCenter will make all necessary changes automatically.
Please note that the $230 pretax parking benefit cap is not affected so no changes are required.
We will continue to keep you informed of any cap changes. If you have any questions or need help with your order, please contact Administrator Support at 1.866.550.CHEK (2435). To learn more about the $230 transit benefit cap, visit www.commuterbenefitsworkforus.com .
Thank you for your continued participation in the TransitChek program and for supporting your employees’ daily commute.”