What are the employers record keeping requirements of the Transportation Commute Benefit?
A8: In the case of cash reimbursements, a bona-fide reimbursement arrangement constitutes adequate record keeping. In the case of the voucher system used for transit or vanpools, employers need only maintain a record of the purchase of the vouchers. In all other cases, the employer must maintain adequate records which reasonably demonstrates expenditures under the benefit. As an example, in the case of an employer who participates in a transit pass program by selling passes of a local transit provider at a discount, the employer should keep records of the pass sales to employees in addition to the arrangement with the transit provider(s).
