Save Money on Your Commute with a Commuter Spending Account What is a Commuter Spending Account (CSA?) It’s an account that allows you to set aside money on a before-tax and after-tax basis for certain kinds of expenses you incur traveling to and from work. If you take public transportation to work or pay to park your car at your work place or at a park and ride station, a CSA can help you save money!
A more human resource.
SM
your funds by paying eligible expenses out of your own pocket and submitting a reimbursement form for parking expenses with the appropriate documentation. See “How do I get reimbursed?” on page 2 for more information.
How to Enroll
Transit CSA
Visit https://myspendingaccount.adp.com. If you’re a first-time user on the site, select “New Users - Register Here” and follow the steps.
Contributions: Determine how much you spend each month on mass transit expenses. You may elect up to $255 per month before-tax. (Election amounts over $255 are after-tax, per IRS regulations.)
To place your first order, enroll in your CSA by selecting “Enroll in my Commuter Benefit” from the left menu on the account homepage. After your initial enrollment in the program, you will continue to select the “Commuter Benefits” link from the left menu to access the CSA enrollment tool.
This account covers mass transit (bus, train or subway) expenses associated with your travel to and from work.
Access to funds: Your funds will be loaded onto the ADP Commuter Debit Card for transit. Use the card like a credit card and your eligible expenses will be automatically deducted from your account. You will receive a card after you enroll.
Parking CSA
This account covers expenses for parking any type of motor vehicle, either near your place of employment or at a location from which you commute to work using mass transit. Contributions: Determine how much you spend each month on parking. You may elect up to $255 per month beforetax. (Election amounts over $255 are after-tax, per IRS regulations.) Access to funds: Your funds will be loaded onto the ADP Commuter Debit Card for parking. Use the card like a credit card and your eligible expenses will be automatically deducted from your account. You will receive a card after you enroll. For parking, you may also choose to access
When funds are available: You must make your election by the 15th of the month for the following benefit month. For example: • If you make your election by April 15, 2016, your new monthly election will be effective as of May 1, 2016. All payroll deductions after May 1 will be based on the new election.” • If you make your election on April 16, 2016 or after, your new monthly election will be effective as of June 1, 2016. All payroll deductions after June 1 will be based on the new election.
How will a CSA save me money?
A CSA lets you set aside money for eligible expenses before your employer deducts taxes from your paycheck. This means the amount of income your taxes are based on will be lower—which means your tax liability will also be lower. continued
How do I get reimbursed?
Here’s an example: Annual Savings*
With CSA
Without CSA
Annual pay
$50,000
$50,000
CSA pre-tax contribution ($150 per month)
($1,800)
$0
Taxable income
$48,200
$50,000
Federal income, Medicare and Social Security taxes
($11,509)
($12,097)
$0
($1,800)
$36,691
$36,103
$588
$0
After-tax dollars spent on eligible commuting expenses Real spendable income
Tax savings with a CSA
*Sample tax savings for a single taxpayer with no dependents. Actual savings will vary based on your individual tax situation. Please consult a tax professional for more information.
Can I change my mind?
Since a CSA is a month-to-month benefit, you can enroll, change or cancel it at any time. Changes must be made by the 15th of the month.
Can I combine the dollar limits from month to month? No. The specified limits for transit and parking apply individually to each calendar month.
What happens if I have a remaining balance in my account at the end of the year (or if I leave my employer)?
Since the CSA is not an annual benefit and the unused balance rolls over month to month, the end of the calendar year has no effect on the account balance. If you leave your employer, any unused pre-tax funds are forfeited. Any unused post-tax funds are returned to you.
What are the dollar limits on tax-free transit and parking benefits?
Federal law limits the amount of gross wages (before taxes are deducted) you may spend each month on tax-free transit or parking. The pre-tax contribution limit for each account is $255 per month.
Use your Commuter Debit Card to pay for eligible transit or parking expenses and the funds are automatically deducted from your CSA. For eligible parking expenses paid out of your own pocket, submit a reimbursement form for parking expenses with the appropriate documentation. ADP will process the request promptly and reimburse you either through direct deposit into your checking or savings account, or send you a check. If you do not file for reimbursement within 180 days of the date you incurred the expenses, you will not be reimbursed.
How do I submit a reimbursement form for parking?
Visit https://myspendingaccount.adp.com or login to your account on the ADP Mobile App to submit a reimbursement request for parking. You can also download a reimbursement form from the website, complete it and fax to 1-866-643-2219 or mail the form and documentation to:
ADP Claims Processing P.O. Box 1853 Alpharetta, GA 30023-1853
Questions?
Call 1-800-557-3156, Monday - Friday, 8 a.m. to 8 p.m. ET to speak with a CSA specialist.
“I contribute $150 per month to my CSA to pay for mass transit expenses. By using pre-tax money for these expenses, I’m saving more than $500 a year on my commute.”
This fact sheet provides a general overview of ADP’s CSA program and is not inclusive, nor a guarantee of eligibility or payment. Please see your company’s plan documents for specifics regarding your plan. If any conflict arises between this brochure and your plan documents, the terms of your company’s plan documents will apply.
ADP and the ADP logo are registered trademarks of ADP, LLC. ADP A more human resource. is a service mark of ADP, LLC. Copyright © 2016 ADP, LLC.
