Transit and Parking costs can be expensive and some employee’s may have expenses that exceed the IRS monthly limit for pre-tax deductions. Given that Transit claims must be processed using the Benny card, some employee's may find themselves having to split a large transit purchase between two forms of payment. In order to consolidate employee transportation spending onto a single card, employer's may offer a Post-Tax Transit or Parking option for payroll deductions.
Under this plan, employee’s can elect to deduct additional funds from their paycheck on a post-tax basis to cover monthly transportation costs beyond the IRS limit. Deductions are submitted to Sentinel through your normal payroll process. Sentinel will establish a separate post-tax account for the employee and make the additional funds available on the debit card. The Benny card operates in a manner that it will pull the maximum pre-tax amount and then any additional funds will come from the post-tax account.
If you already offer a Transportation plan, there is no additional cost for Sentinel to administer a Post-Tax option. Speak with your account manager for more information.