At ADP TotalSource, we are continuously looking for ways to make your worksite employees’ work-lives easier. While we can’t control traffic or shorten their commutes, we can simplify our Online Commuter Benefits (OCB) program so that more people can take full advantage.
Previously, participants had to build up a balance in their account from payroll deductions before they could use the pre-tax benefit for purchasing parking or mass transit passes. We’ve taken your feedback and frustrations to heart and are making a dramatic change to the system.
Now, your worksite employees can benefit from the pre-tax advantage sooner! No more waiting to accrue a large enough balance in their account, missing out on weeks—maybe even months—of the benefit.
Transition from old to new
The ordering window on your current account will end as usual on the fifth of January for the February benefit month. All orders must be placed prior to January 5 in order to prevent service disruption. Participants can use their current parking and transit debit cards until February 5. Debit card balances must be depleted by February 5 as the cards will become inactive February 6.
New debit cards will be issued in February and participants can begin using them in March to purchase parking and transit passes for the March benefit month. The initial ordering window will from January 6 through January 24 for the March benefit month. Going forward your ordering window will from the 25th of the month through the 24th of the following month.
Any existing OCB balance from the old account will migrate to the new account March 11-24. OCB participants are encouraged to use up their balance prior to February 5 so there is as little as possible to migrate.
What it means for you as the employer
Most importantly, this update will reinforce the true value of the Online Commuter Benefits you offer, setting you apart from the competition as an employer of choice. You may even see an increase in the number of participants!
For the new system to work without requiring an accrued employee balance, your employee’s OCB election amount will be billed each month as a line item charge on your benefits invoice, starting in February 2015. Your participating worksite employees will receive payroll deductions on a per pay period basis. Those worksite employee deductions will be credited to you as an invoice credit on a per payroll basis.
Key dates and events
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January 5
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Deadline for February pass fulfillment (current ordering timeframe)
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January 6
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Complete order setup in new ordering system
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January 6-24
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Ordering window for March pass fulfillment (going forward your ordering window will be from the 25th of the month through the 24th of the following month)
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January 25-February 24
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Ordering window for April pass fulfillment
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February 1
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Benefits invoice will include a line item charge reflecting your worksite employee’s election amount; this amount will be credited to you as an invoice credit on a per payroll basis through worksite employee payroll deductions
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February 5
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Exhaust debit cards balances; cards turn off at Midnight ET
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February 5
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Use up any account balance prior to this date so there is as little as possible to migrate
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February 10
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ACH payment of your Benefits invoice which now includes your employees OCB election amounts
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March 11-24
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Any remaining balance funds in old account will migrate to new account
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We’ll be providing you more details about the transition and any actions you or your worksite employees need to take in the coming months. In the meantime, please contact your Human Resource Business Partner if you have any questions.