Transit (also known as Commuter) accounts are a popular employer-sponsored benefit, especially for companies and employees located in and around major metropolitan cities. For third party administrators (TPAs) who are looking to expand their portfolio of services, getting onboard with Summit Transit may be the right solution.
By offering a Transit plan to your clients, you can increase revenue without taking on a lot of additional work. Summit, DataPath’s cloud-based administrative platform, makes administering Transit accounts simple and easy.
- Increased tax savings: Both employers and employees can enjoy tax savings. If the plan is offered as a pre-tax contribution, the employer saves money on payroll taxes since the pre-tax exclusion doesn’t count towards an employee’s official compensation. Employees save on pre-tax contributions* to their commuter plan because it reduces their total taxable income.
- Account-linked debit cards: Summit’s account-linked debit card provides employees with quick, secure access to their set aside funds. The commuter can use the card for bus, rail, or subway fare, at an employer-provided parking lot, or to cover vanpool costs.
In addition, Summit offers terminal restrictions in many major metros where cash reimbursement is no longer permitted by IRS regulations. When the terminally-restricted debit card is used at a terminal that sells only fare media, the commuter receives auto-adjudication. This results in less work for the TPA because there are fewer claims to process.
- Simplified claims processing: Claims processing has never been easier. Participants can submit claims documents by faxing them through Zip-Line™ or by taking a pic with the SnapClaim™ feature of the Summit mobile app. The platform automatically processes the submissions, reducing the amount of work related to manual claims submissions.
- On-the-Go Account Information: Summit’s mobile app makes it easy for users to check their account information on-the-go. They can manage personal info, see account balances, submit claims receipts, and more. It’s available for most mobile devices.
Summit Transit can help you get on the right track to a highly profitable, low-maintenance revenue stream.
|*Monthly Pre-Tax Contributions|
|Expense||Description||Maximum Monthly Contribution|
Commuter Highway Vehicle
|Any pass, token, fare card, voucher, or similar item for mass transit (bus, subway, train, ferry) OR a vehicle (operated by a third party) that sits at least 6 people, not including the driver||$255|
|Parking||Parking lot fees for a lot that is located near the business premises||$255|
|Bicycle||Includes purchase of the bicycle and improvements, repair, and storage||$20|