Commuter Benefit Plan
The Commuter Benefit Plan is a tax-free way to pay for eligible commuting expenses throughout the year. If you take public transportation, ride in a carpool or commercial vanpool, or pay to park near work or public transportation, you can elect pre-tax payroll deductions, which lowers your taxes.
You may contribute the following amounts:
- For mass transit, limit is $325 per month
- For parking, limit is $325 per month
Monthly pre-tax limits are subject to change each year.
The Commuter Benefit Plan is administered by Voya.
Eligibility
All regular full-time employees of Canon Medical Systems who are regularly scheduled to work 20 hours or more per week are eligible to participate. There is no waiting period.
Enrollment
You may enroll in the plan at any time of the year. To enroll, complete the Voya enrollment form and send it to the Benefits Department.
Cost of Coverage
You pay the full cost of the plan through pre-tax payroll deductions. When you pay for coverage on a pre-tax basis, the money is taken out of your paycheck before federal income and employment (Social Security, unemployment, and income tax withholding) taxes are withheld (state tax still applies). That means you lower your taxable income for the year.
The transit and parking benefits are separate accounts. You do not need to file any claims for reimbursement. After you enroll, Voya will send you a debit card that you can use for eligible expenses.
How Much You Can Contribute
The amount you can contribute on a pre-tax basis is subject to the following government limits:
- For mass transit, you may contribute up to $325 per month
- For parking, you may contribute up to $325 per month
Monthly pre-tax limits are subject to change each year. Monthly pre-tax contributions that are not used will carry over to the next month. However, if your participation ends because the Company terminates the plan or your employment terminates, any balance remaining in your account that cannot be used for eligible commuting or parking expenses will be forfeited.
Eligible and Ineligible Transportation Expenses
Eligible transportation expenses include the following:
- Transit—tickets, passes, tokens, vouchers, or fares for buses, trains, subways, streetcars, ferries, car pool, commuter highway vehicle, and other forms of mass transit.
- Parking—cost of parking at your workplace or at a location from which you park and then commute the rest of the way to work.
Ineligible commuting expenses include the following:
- Tolls
- Traffic tickets
- Fuel
- Mileage or other costs for operating your vehicle
- Taxis
- Payments to an individual in a carpool or to a friend who drives you to work
- Parking at an office that provides free parking to employees
- Parking at a shopping mall or other location where you stop on your drive to or from your office
- Any amounts you claim as a deduction on your federal income tax return
Making Changes
You can enroll, cancel, or change your contributions at any time of the year by contacting the Benefits Department.
Effects on Other Benefits
Some of your other benefits, such as life insurance and disability, are based on your gross pay. Those benefits will continue to be based on your gross pay, before your pre-tax commuting contributions are subtracted.
The amount of your future Social Security benefit may be slightly reduced because both you and the Company will pay Social Security taxes on your pay after pre-tax commuting contributions have been subtracted.
Your participation in this plan will end on the earliest of the following dates:
- The date the Company terminates the plan
- The date you terminate employment with the Company
- The date you cancel your participation
- The date the Company amends the plan to terminate coverage for the group of employees of which you are a member
- When you are no longer a member of the group of employees eligible to participate
If your participation ends because the Company terminates the plan or your employment terminates, any balance remaining in your account that cannot be used for eligible commuting or parking expenses will be forfeited.
If your employment ends in a month that you paid for mass transit or parking expenses through the plan, the value of coverage for that month must be included in your wages for personal income tax purposes. This amount will also be included in your wages for employment tax purposes (Social Security, unemployment tax, and income tax withholding) if your termination date was established before you paid for those expenses through the plan.