Qualified Transportation Fringe Benefits (QTFB)
The Qualified Parking Spending program has expanded and has been renamed Qualified Transportation Fringe Benefits (QTFB). Read about all of the new plan details below.
The QTFB program is regulated by the Internal Revenue Service (IRS) and is offered to State of Michigan employees. The program allows you to pay for eligible parking expenses and vanpool ridership fees (MichiVan only) with pre-tax dollars via payroll deduction. In other words, the money you contribute to your QTFB account will not be taxed. For every dollar set aside you can reduce the cost of your out-of-pocket parking and vanpool expenses.
Generally, this program is not for use if you park in a State owned or leased lot/ramp.
What are eligible QTFB expenses?
Non-State owned or leased parking lot/ramp (including MichiVan)
- Metered parking
How do I enroll in QTFB?
By following any one of the three methods below:
Enrollments must be future dated and will always take effect the first day of the month that you choose, up to 6 months in advance. For example, enrollments made during the month of May would automatically take effect June 1 unless you select a later month.
You can enroll in the program at any time during the year. Your deduction will roll over from year to year until you stop your deduction. The maximum monthly deduction for parking is $245 (or $113.08 per pay period) for 2013. This amount is subject to change in future years.
How Do I Seek Reimbursement?
By following either method below:
- Login to MI HR Self-Service, select the Benefits menu item, Qualified Transportation, then Reimbursement Claim(s). You can then review your current account balance and submit a reimbursement claim.
- Submit a Reimbursement Claim and substantiating documentation by completing the QTFB Reimbursement Claim Form CS-1779 and fax or mail to the Employee Benefits Division (EBD).
What Do I Need to Submit With My Reimbursement Claim?
Substantiating documentation (e.g., receipts, credit card or bank statements) for your QTFB expenses must include the:
Documentation to substantiate your eligible expenses is required for all claims submitted. You will receive reimbursement ONLY if the appropriate documentation is provided. The only exception is for metered parking where a receipt is not available in the normal course of business.
Claims must be submitted in a timely manner. The deadline for submitting a claim is 180 days from the last day of the month in which the expense was incurred. Any claims submitted after this deadline will be ineligible for reimbursement.
Non-taxable reimbursements will appear on your pay warrant within 2-4 weeks from the time in which you submit your claim and substantiating documentation.
How Do I Make Changes or Stop My Deduction?
You can make changes to your QTFB deduction at any time throughout the year. Changes will be effective the first day of the following month that you make the change unless you elect a later date, and cannot be retroactive. For example, changes made during the month of May would take effect June 1 unless you select a later month.
If you no longer wish to participate in the plan you must stop your QTFB deduction at the end of a future pay period in which you choose. You will have 7 pay periods to either restart the deduction or claim the account balance. Otherwise, the account balance will be forfeited per IRS regulations.
Have further questions about QTFB?
If you would like more information about the QTFB program please view the Frequently Asked Questions (FAQs) for an in depth plan overview.
The maximum monthly deduction for parking is $245 (or $113.08 per pay period) for 2013. This amount is subject to change in future years.