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Secondary classification for pretax parking and transit deductions

edited Mar 3, 2021 11:40PM in Payroll and Global Payroll Interface (GPI) 5 comments

Summary

Which secondary classification should be used for qualified transit and parking pretax deductions

Content

Compensation reduction agreements.

Can anyone describe which secondary classification they use for the qualified parking and transit pretax deductions. 

Per Publication 15B under transportation benefits:

A compensation reduction agreement is a way to provide qualified transportation benefits on a pre-tax basis by offering your employees a choice between cash compensation and any qualified transportation benefit. A compensation reduction arrangement can be used with a bona fide reimbursement arrangement. For each month, the amount of the compensation reduction can't exceed the monthly limits for transportation benefits described in 

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