Manage your commuter benefits

Commuter benefits help pay for qualified commuting expenses with pre-tax money—not to be spent on health expenses.

If your commuter benefits are managed by Gusto, you will be issued a Gusto Benefits Card to pay for qualified transit and parking commuter expenses.

Some public transit stations may sell miscellaneous items like newspapers, coffee, parking passes, etc. These expenses are unqualified expenses. If your card is declined, you can submit a claim to get reimbursed for qualified expenses only. 

Types of expenses

Qualified transit expenses Qualified parking expenses Unqualified expenses
Train Parking lots Tolls
Subway Parking meters Gas
Bus Parking garages Car maintenance
Ferry Parking space provided by your employer Parking that isn't part of your commute
Vanpool   Bike expenses
Uber Pool/Lyft Line (only in select cities)    

The maximum pre-tax election for transit and parking contributions in 2022 is $280/month, regardless of the balance you may have on your card. For 2023, the contribution limit has increased to $300/month.

Here are some quick tips on how to use the funds in a commuter benefits account: 

Post-employment: Commuter benefits are terminated on an employee's last day of employment. They'll have 90 days to submit a Gusto Benefits Card claim for services incurred while the policy was active. Claims can be submitted for out-of-pocket transit expenses only if the first attempt was made with the Gusto Benefits Card and the transaction was denied. Any unused funds will be forfeited back to the company, which is a regulation set in place by the Section 1.132-9(b) Q&A 14(d) of this IRS document.

Transferring funds between accounts: Funds can't be transferred. Parking accounts are for parking, transit accounts are for transit, and the funds cannot be transferred between the two. 

Unused funds: The money rolls over each month and accumulates, but you can only spend up the the IRS maximum each month ($280 in 2022 and $300 in 2023), even if you have more than that in your account. Any funds left over after the policy is terminated or the employee leaves the company expire 90 days after the termination date. 

Click here to use your Gusto Benefits Card Manager account to view transactions, balances, submit claims, and more.