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Can I decide whether to allow manual claims for transit expenses for my employees?

Written by Aimee Reynard
Updated 6 months ago

Simple Answer:

No. The IRS does not allow manual cash reimbursements for transit benefits.

Detailed Answer:

Per Rev. Rul. 2014-32—the IRS will no longer allow manual cash reimbursements for transit benefits beginning January 1, 2016. Instead, those employers who offer transportation benefits will be required to provide a terminal-restricted debit card (meaning it can only be used at a location that exclusively sells transit passes) to their employees. Therefore, Ameriflex cannot process cash reimbursements for manual transit claims. Transit expenses may only be paid with use of our Ameriflex Debit Mastercard at the point of sale. Please note that the IRS ruling does not affect parking accounts.

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