Commuter Express
Employer User Guide
A comprehensive commuter benefits program
provided by WageWorks
1026-3113
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Commuter Express Employer User Guide
Table of Contents
Commuter Program Overview ................................................................................................................................... 3
Employee Savings .............................................................................................................................................. 3
Pre-Tax Limits ..................................................................................................................................................... 3
Eligible Employees .............................................................................................................................................. 3
Employer Savings ............................................................................................................................................... 3
Employer Subsidy ............................................................................................................................................... 3
Written Plan Document ....................................................................................................................................... 3
Cash Reimbursement for Transit Programs ....................................................................................................... 3
IRS Tax Code ..................................................................................................................................................... 3
New Employer Setup ................................................................................................................................................. 4
New Plan Setup .................................................................................................................................................. 4
Employee Enrollment .......................................................................................................................................... 4
Confirm Usage .................................................................................................................................................... 5
Enrollment Check List ......................................................................................................................................... 5
Managing Your Account ............................................................................................................................................ 7
Add Employee ..................................................................................................................................................... 7
Modify Monthly Load Amount ............................................................................................................................. 7
Cancel Account ................................................................................................................................................... 8
Edit Employee’s Contact Information .................................................................................................................. 8
The Employer Profile ................................................................................................................................................. 9
Update Employer Contacts ................................................................................................................................. 9
Update Banking Information ............................................................................................................................... 9
Reports ...................................................................................................................................................................... 9
Frequently Asked Questions ................................................................................................................................... 10
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Commuter Program Overview
WageWorks has a comprehensive program that covers public transportation, vanpool, and parking anywhere in
the U.S. The WageWorks Commuter Express program is designed to reduce your administration time and
maximize participation.
Commuter benefits programs offered by employers allow employees to use pre-tax earnings deducted from their
paychecks to pay for public transportation, vanpool, and parking. Similar to a 401(k), employees save because
the money they use to pay for commuting costs is deducted from their earnings before taxes are taken out.
Companies save, too, because payroll taxes are reduced by offering the program.
Commuters can use up to $130 per month pre-tax to pay for public transportation and vanpool and up to $250 per
month pre-tax for parking.
Employee Savings
Employees save since they do not have to pay personal income tax, Social Security, or Medicare tax on wages or
employer contributions used to purchase transit through WageWorks. For example, an employee who spends
$100 per month or $1,200 per year can save approximately $500 per year in taxes.
Pre-Tax Limits
Under Federal law, the monthly limit for 2014 is $130 for transit and vanpool expenses and $250 for eligible
parking. State taxes apply in MS, NJ, and PA.
Eligible Employees
All common law and statutory employees are eligible. The employer determines which employees are eligible.
There is no “nondiscrimination testing” as with 401(k) plans. Self-employed persons, independent contractors,
partners in a partnership, and 2% shareholders in an S Corporation are not eligible.
Employer Savings
For employers who have to contribute into the Social Security system, wages or employer contributions to
purchase commuter benefits are not subject to FICA. For example, if an employee, whose income is below the
FICA limit, spends $100 per month, the employer would save $7.65 per month or $92 per year in FICA taxes.
Employer Subsidy
Employers can make a monetary contribution towards their employees’ transit or parking expenses, in addition to
any contributions by the employee through pre-tax salary deductions. The combined amount of employee and
employer contributions may not exceed the pre-tax limits.
Written Plan Document
A written plan document is not required for Commuter Benefits.
Cash Reimbursement for Transit Programs
The laws governing tax-free transit benefits differ from those governing FSAs. Most important, federal law
prohibits the use of cash reimbursements where transit passes and vouchers are readily available for direct
distribution.
IRS Tax Code
Commuter benefits (known as Qualified Transportation Fringe Benefits) are authorized under Internal Revenue
Code Section 132(f). The IRS has detailed regulations under this Code Section (Treas. Reg. 1.132-9).
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New Employer Setup
The WageWorks Commuter Express is a fast and convenient solution to deliver pre-tax benefits for employers.
A WageWorks Commuter Express Account enables small and mid-sized businesses to provide their employees
with a consumer-friendly, tax-advantaged commuter benefits. There are no minimum participation requirements.
Once your Administration Site is set up, employees can log in at www.wageworks.com to place their commuter
order. Employees get the convenience of home delivery of passes, direct payment to parking garages, and the
option of the WageWorks commuter stored value card.
The Commuter Express initial set up is provided by WageWorks to get your plan up and running. Secure Transit
and/or Parking Accounts are established based on the employee’s election amounts. No ongoing administration is
required on your part if the employee’s status doesn’t change. WageWorks Accounts are automatically reloaded
with funds each month unless the benefits administrator changes it.
New Plan Setup
Plan Setup is accomplished in four steps:
1. Application: Complete and return the WageWorks Commuter Express Application to your WageWorks
Sales Representative.
2. Initial Plan Setup: Completed by WageWorks. A new account confirmation email will be sent
immediately following plan setup.
3. Training: Training will be scheduled with WageWorks as part of your plan setup.
4. Verification: Log into www.wageworks.com to verify the plan setup.
Employee Enrollment
Employee enrollment is accomplished in four steps:
1. Employee Elections
a. Distribute enrollment forms to all eligible employees.
i. To access the Enrollment/Change Forms, Announcement Emails or Enrollment Guides,
log into the Administration Site at www.wageworks.com and select the Communications
Gateway tab.
b. Employees will need to identify how much they would like to contribute in pre-tax and possibly
post-tax dollars to the Commuter Benefit. In order to set up Transit and/or Parking Accounts, the
following information will need to be captured on the enrollment form:
i. Dollar Amount the employee is electing
ii. Whether the election is for Transit and/or Parking
iii. Employee’s email address
iv. Last four digits of the employee’s Social Security Number
2. Initial Enrollment: Submit the completed enrollment forms to WageWorks via Fax at 1-866-672-3620.
a. Please note that depending on the size of the employer, an electronic enrollment may be
requested by WageWorks.
3. Account Distribution: Upon completion of the initial enrollment, WageWorks will distribute a welcome
email to all participating employees. This email will contain the employee’s unique Transit and/or Parking
Account Numbers, information on how to place their commuter order on www.wageworks.com, and a
User Guide.
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4. Notification to Payroll: If the company is providing the commuter benefits through payroll deductions or
a partial subsidy, the company’s payroll department, administrator, or payroll outsourcer will need to be
notified of the dollar value the employee should have deducted from their paycheck pre-tax. You can
access a detailed report for payroll by logging into your Administration Site at www.wageworks.com,
select Report and select Account History Report under Commuter Express Benefits.
Confirm Usage
You can verify that your employees have placed their Commuter Order by checking the ELECTION REPORT.
Enrollment Check List
Below is a recommended checklist to assist new employers in rolling out the program.
ROLLOUT PLAN
Action Item
Description
Complete
Schedule Payroll Deduction
Usually done in cooperation with Payroll. Determine if payroll
deductions will occur prior, in conjunction with, or after
WageWorks receives funding for Accounts. WageWorks will
initiate the monthly payment to accounts on the 4th of each
month prior to the benefit month (e.g., June 4th for July
benefit month).
Determine First Benefit Month
You will need to determine your first benefit month. An
important factor in determining this is the relationship of
employee’s payroll deductions to the amounts loaded in an
employee’s account.
Some employers prefer to have taken all payroll deductions
before funds are loaded into the accounts on the 4th of the
month. This, however, requires that employees make payroll
deduction elections up to two months ahead of the benefit
month.
Other employers prefer to take payroll deductions just before
the benefit month begins or in the 1st paycheck of the benefit
month. In this latter case, it could mean that an employee
receives an order even though payroll deductions weren’t
taken, but this is an infrequent occurrence for most
employers. This latter method is chosen by employers who
want to focus on employee convenience and usage of the
program and are willing to tolerate the infrequent situation
where employees received a benefit without a payroll
deduction.
Determine a Monthly Payroll
Deduction Deadline
Commuter Express Employer User Guide
Commuter Benefits are monthly benefits. Many employers
allow employees to update their commuter election outside
the Open Enrollment period since there are no plan
restrictions. It is recommended that the employer designate a
deadline when payroll deduction changes must be submitted
so the employee is clear when the change will take effect.
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EMPLOYEE COMMUNICATION
Action Item
Description
Complete
Create Program Announcement
Typically employers utilize the WageWorks sample
communication email templates when drafting their
communications. We suggest you include the deadline when
elections are due, first benefit month, and the first payroll
deduction date.
Send Program Announcement
Typically employers send the communication via email and
attach an Enrollment Guide and Election/Change Form.
ONGOING MAINTENANCE
Action Item
Description
Confirm Balances
Periodically check employee balances with the Account
History report. If an employee’s balance becomes excessive
(larger than three months of elections) you may want to
check with them to confirm they want to continue to
contribute funds.
Update Accounts
WageWorks recommends that employers implement a
process to manage Commuter Election changes. For
example, the Enrollment/Change Form is due to HR by the
20th of the month two months prior to the benefit month for
the change to take effect.
Cancel Account
Cancel Accounts if an employee no longer wishes to
participate in the program.
Terminate Employee
This function will cancel all future loads for an employee who
has terminated employment.
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Managing Your Account
WageWorks Commuter Express is designed to be hands-free. The Transit and/or Parking Accounts are
automatically reloaded with funds each month unless the benefits administrator changes them. Changes are
required when an employee’s status changes; for example, an employee is new to the organization and wants
commuter benefits, an employee leaves the company, or an employee moves their home or work location and
needs to contribute a different dollar value.
Add Employee
Since Commuter Benefits are not tied to an annual plan, most employers allow existing employees and new hires
to enroll in the program throughout the year.
To add an employee, log into your Administration Site at www.wageworks.com, then select the Add Eligible/
Participant under the Participants tab. Enter the employee profile which consists of the last four digits of the
SSN, Last Name, First Name, Middle Initial, and Email Address. Select the “Save Profile & Enter Commuter
Enrollment” option and click Create Account. Select the Account Type from the dropdown menu provided,
enter the Monthly Load Amount and click the Submit button. Repeat these steps for additional benefits.
Modify Monthly Load Amount
This feature allows the employer to update the dollar value that is being added to a Transit and/or Parking
Account on a monthly basis. This dollar value can be updated anytime before the ACH occurs.
If an employee goes on leave or would like to temporarily stop contributing to the program, you can change the
Load Value to $0. This will stop funds from being added to a Transit or Parking Account and then the dollar value
can be updated to the Commuter Election when the employee wants to participate again. When the Load Value is
$0, the employer is not charged a service fee.
To access the Modify Monthly Load Amount option, log into your Administration Account at www.wageworks.com
then select the Participants tab. Locate the employee by last name, first name, etc. under the Search option.
Click on the employee name and select the Commuter option. Under Primary Actions select the Modify
Monthly Load Amount, enter the new Load Amount and click the Submit button.
The employee will need to log into their account at www.wageworks.com to update their commuter order. The
order is not automatically updated when the value is updated. Be sure to notify your Payroll of this update.
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Cancel Account
The Cancel Account feature should be used when an employee is terminated. This feature prevents any
additional funds from being added to the employee’s Account(s). If the employee still has a balance in their
Transit or Parking Account when they are terminated, they will continue to receive their Commuter Order until the
balance is depleted at no cost to the employer.
To access the Cancel Account option, log into your Administration Account at www.wageworks.com then select
the Participants tab. Locate the employee by last name, first name, etc. under the Search option. Click on the
employee name and select the Commuter option. Under Employee Actions select Terminate Employee and
then click the Submit button.
Be sure to notify your Payroll of this update.
Edit Employee’s Contact Information
If an employee’s contact information is entered incorrectly or an employee’s name or email changes, the edits can
be made online.
To access the employee’s information, log into your Administration Account at www.wageworks.com then select
the Participants tab. Locate the employee by last name, first name, etc. under the Search option. Click on the
employee name and select the Update Profile option. Update the employee Profile and click the Next button.
Click the Save Profile option.
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The Employer Profile
The Employer Profile Tab contains the basic setup information in regards to the Administration Site.
Update Employer Contacts
To access the employer contact information, log into your Administration Account at www.wageworks.com then
select the Company tab and Contacts sub tab. Locate the contact that you wish to modify under the Active or
Expired Contacts list at the bottom of the page. Click View/Edit on the contact name. Update the contact
information and click the Save button.
Update Banking Information
To access the employer banking information, log into your Administration Account at www.wageworks.com then
select the Company tab and Billing sub tab. Update the employer billing information and click the Submit button.
Reports
WageWorks Commuter Express offers several reports to assist the Administrator in managing the program.
PRIMARY REPORTS
Election Report
To view employee's commuter orders.
Account History Report
Summary of all employees that have ever participated
in the program, the status of their account, the
scheduled load amount and their current balance.
Payment Report
All active employees participating in the plan and the
dollar value that is being contributed to their Parking
and/or Transit plan. This is available for download to an
Excel file that can be sent to Payroll.
Insufficient Funds Report
All employees with insufficient funds for orders placed.
OTHER REFERENCE REPORTS
Adjustment Report
Account Adjustment Report
Lost Pass Count Report
Count of reported lost passes.
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Frequently Asked Questions
How much will the company save in payroll taxes?
Companies can save up to 7.65% in payroll taxes for every dollar an employee contributes.
How does an employer include a subsidy with Commuter Express?
The Transit and/or Parking Account are created with the subsidy amount included. If an employer is providing a
partial subsidy and the employee is also contributing funds, the administrator should deduct the subsidy prior to
communicating the value to payroll. Please note: up to $130 for Transit and $250 for Parking can be used pre-tax,
including the subsidy.
Are the Accounts Refundable to the Employee?
No, once funds have been designated as pre-tax dollars, they must be used for commuting. The funds will remain
in the employee’s Transit and/or Parking Account until they are used as a future date.
Does changing the dollar value being contributed to an employee’s Transit or Parking Account
update their Commuter Order?
No, changing the dollar value only changes the amount available to the employee. The employee needs to
access their Account at www.wageworks.com to update their Commuter Order.
Does canceling a Transit and/or Parking Account cancel the employee’s Commuter Order?
No, canceling the Account(s) only prevents additional dollars from being added to the account. If the employee
has enough funds in the account, a pending Commuter Order will process. If the employee does not have enough
funds to cover a pending Commuter Order, the employee can provide a personal credit card to complete the order
or the Commuter Order will be cancelled automatically.
What if I forget my password?
Contact WageWorks Customer Service 1-877-924-3967.
What if an employee cannot log into www.wageworks.com?
Usually if the employee can’t log into www.wageworks.com it is because the contact information they are using
does not match the information provided. Log into www.wageworks.com and select Employer Login. Select
Participants and enter the desired participant search criteria. Select the participant to double check that the
information the employee is entering matches what it is on record.
What happens if an order is not placed by the 10th of the month?
The employer has the option of creating a Missed Pay Me Back claim on the administrative site, which then
allows the participant to initiate a Pay Me Back claim on the participant website on the first day of the benefit
month.
Need more information or assistance?
Please call WageWorks at 1-877-924-3967.
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