Important News About SmartBenefits®

The Washington Metropolitan Area Transit Authority (Metro) is focusing on SmartBenefits® as the primary means of providing transit benefits. SmartBenefits® is a Web-based program whereby employers assign the dollar value of employees' commuter benefits electronically to employees' SmarTrip® cards.

Set up a SmartBenefits® account online or call 202-962-1326 and choose Option 3 for details. Join the other employers who've discovered how convenient SmartBenefits® really is.

While Metro is pleased to assist employers with the establishment of their SmartBenefits® program, it is the responsibility of each employer to ensure that their program complies with all IRS requirements. We therefore recommend that each employer discuss their program with their own tax advisors to ensure compliance with IRS requirements.

2012 IRS limits for Qualified Transportation Fringe

"Qualified Transportation Fringe Benefit. For taxable years beginning in 2012, the monthly limitation under § 132(f)(2)(A), regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass, is $125. The monthly limitation under § 132(f)(2)(B), regarding the fringe benefit exclusion amount for qualified parking, is $240".

Source: IRS Revenue Procedures (rp-11-52) http://www.irs.gov/pub/irs-drop/rp-11-52.pdf.

Please inform your employees about these changes to ensure proper adjustments are made within their Passenger Allocation account.

SmartBenefits® Autoload Conversion for IRS Compliance

Metro's SmartBenefits® program is taking steps to comply with the IRS requirments to separate parking and transit benefits to restrict comingled use by January 2012. Employers that provide transit AND parking benefits MUST have those benefits set up in their separate benefit category types. When your account converts to the new Autoload program, transit benefits cannot be used to pay for parking at Metro stations and assigned parking benefits cannot be used to pay for transit. For instructions on how to establish transit and parking benefits, please see the SmartBenefits® Reference Guide.

Metro is phasing in all accounts to the new SmartBenefits® Autoload program that separates transit from parking benefits. The Autoload process allows passengers to just tap their SmarTrip® card to a rail faregate or bus farebox target to claim their benefits. No more loading at the vedning machines! Metro will notify each account employer prior to their conversion date. Please check youir email address in your SmartBeneftis® online account to assure that we have the most current contact information. For additional information, see the SmartBenefits® Autoload Schedule section.

SmartBenefits® AnyTime

Now you can assign transit benefits directly to SmarTrip® cards for your employees after the standard cutoff date. This convenience allows your employees to immediately claim transit benefits. This dramatically cuts down the time for assigning benefits and enhances program management. For additional information, view the SmartBenefits® AnyTime presentation on the SmartBenefits® website page.