Our company only need a limited number of transit passes for this year for our employees. The amount we need is less than the processing fee charged by WageWorks. Is it still possible to implement a transit benefit for employees?

ANSWER

The BIDaWIZ Team's Answer:

Yes, if the fees are all restrictive, then it would be considered not readily available per IRC Section 132(f)(3). The regulations state that a voucher or similar item is not readily available if the entity providing the item imposes restrictions that effectively prevent employers from obtaining vouchers appropriate for distribution to employees. In this case, the employee can provide reimbursements for the transit costs incurred by the employee.