This article only applies to the COM commuter account type. It does not apply to CAM or CX.
Streamlined Commuter Benefits Management Arrives with HealthEquity's New Enhancement
Understanding and managing Commuter Benefits effectively is essential for maximizing
savings and convenience for employees. HealthEquity is committed to simplifying this
experience for both members and administrators. Embracing this commitment, we've
introduced a pivotal enhancement to our Commuter Solution to easily convert unused pre-tax Transit or Parking commuter card balances into credits.
Transforming Unused Pre-Tax Commuter Card Funds into Future Opportunities
In an exciting move, HealthEquity's Commuter Solution now allows members to remove
funds from their commuter card (transit and/or parking wallet) and converts those pre-tax
funds into a pre-tax credit. After funds are converted into a pre-tax credit, those credits will offset the member’s payroll deduction for a future transit and/or parking order up to the pre-tax max. This innovation offers unprecedented flexibility in benefit management. The enhanced functionality isn't merely about increasing benefit utilization; it's about
delivering satisfaction on a new level.
Imagine an employee with a surplus commuter card parking balance will now have the
flexibility to repurpose those funds towards Transit elections. It's a straightforward
process that could substantially reduce or even eliminate the cost of their next purchase.
What once required manual intervention is now a streamlined, self-service feature within
the member portal.
This shift not only empowers members but also signifies the obsolescence of traditional
phone-based Member Services for such transactions.
How does a member perform this new process in the member portal?
Choose the ‘About this Program’ option from the Member Portal dashboard.
Click the ‘Program Details’ link.
Click on ‘Commuter Card Balance to Credit Conversion’ link.
Add the amount to the ‘Funds to Use for Commuter Orders’ under the ‘Use Pre-Tax
Transit Balance’ section they wish to pull funds from.
Confirm the request on the ‘Review Request’ screen.
Submit the request.
Common questions for Card to Credit feature:
Which Commuter Account models are compatible with the Card to Credit feature?
The Card to Credit features is exclusive to the Commuter Order Model (COM).
Why is the Card to Credit feature not available for CAM and CX Commuter Models?
The Card to Credit feature is not applicable to the Commuter Account Model (CAM) or the
Commuter Express Model (CX) due to their distinct operational frameworks. In the CAM
setup, the funding process is directly tied to payroll contributions, which are allocated to
accounts in anticipation of upcoming commuter orders. These funds must be present by the client's cutoff date to advance the order to the fulfillment stage, contrasting with the pre-estimation billing approach of other models. This ensures that orders are only processed when adequate funds are secured, negating the concept of a 'credit' balance for reallocating to future orders.
How can I determine my account model (CAM, COM, CX)?
Please contact your service delivery manager or team to confirm for assistance.
Can I opt out of this feature?
Yes, please contact the HealthEquity client services team to request the removal of this feature.
Are the credit funds available immediately?
Once the member submits the request, they must allow 2-3 business days for funds to be
deducted from their card balance and converted to credit. Be mindful of your cutoff date.
Does the member have to move all the money from an existing funded account when requesting credit?
Members can custom create the credit amount they want up to the maximum allowed per
month, which is currently $315.00 for both parking and transit.
How is the credit applied?
When a member makes a new commuter order, the credit that was created will offset their payroll deductions for the new order.
Where in the regulations does it say that this is compliant?
The regulations do not specifically address the issue of using transit and parking funds
interchangeably. In response to questions raised during the COVID-19 emergency, the
Department of the Treasury confirmed that if all requirements of pretax commuter benefits are followed, an employee is permitted to use unused transit funds for parking expenses and vice versa.
Will your system have rules in place that force the member to adhere to the IRS
monthly maximums?
Yes. This new self-service process is developed with all the necessary controls in place to
assure monthly maximums are not exceeded. A few examples are:
Pretax deductions are limited to the monthly cap for each type of benefit. Members
cannot double-up on deductions.
The provision of the benefit is limited to the monthly cap for each type of benefit. Members cannot double-up on either transit or parking.
Spending and reimbursement of claims is limited to any monthly cap for each type of
benefit.
HealthEquity does not provide legal, tax, or financial advice.