A Commuter Expense Reimbursement Program gives employees the ability to pay for qualified travel expenses with pre-tax dollars. This means you can set aside a portion of your salary, before taxes are calculated, and use that money to pay for work related parking and public transportation. The amount set aside is completely exempt from federal income taxes and Social Security (FICA), as well as California income and SDI taxes. This generates savings to both participants and employers.
You can enroll, change or terminate your participation on a monthly basis if you would like. However, you must make the change prior to the beginning of the month that you want the change to become effective. For example, if you would like to enroll effective March 1st, the enrollment would need to be completed prior to March 1. All changes are effective the first of the month following.
You have 90 days from the date of termination to submit any claims for expenses incurred while you were an active employee. Any funds remaining in your account after that 90-day period has ended will be forfeited back to your employer.