1602 - Mass Transit Commute Program (Historical View)

** Effective: 10/21/2025 1:11:46 PM - Present **

Status: Active

Change Notes

Added link to Mass Transit and Vanpool Commute Program Report Template (Non-CalATERS).

Category

Commute and Parking Programs

Audience List

Synopsis

This policy:

Introduction

The Program provides mass transit incentives to all eligible state employees. The goal of the Program is to reduce the number of vehicles on the road by encouraging employees to explore and use alternate means of transportation to commute to and from work. Fewer vehicles on the road means an improvement in air quality and less traffic congestion.

The state, as the employer, may establish and implement procedures and eligibility criteria for the administration of the benefits in the Program, including required receipts and certification of expenses. 

For bargaining units (BUs) with an existing Memorandum of Understanding (MOU), if the MOU contains commute program language that is in conflict with this policy, the MOU language shall be controlling.

Statement

Eligibility

Any active state employee who uses public transit passes to commute and whose salary is paid directly by the State of California is eligible to participate in the Program.

Employees headquartered out-of-state are eligible to participate in the Program.

This benefit may be claimed by employees who combine using transit passes for a portion of their commutes with bicycling for a portion of their commutes.

Employees may change their participation in the Program on a monthly basis.

Enrollment/Participation

Follow the established process for your department. See the “How to Substantiate/Submit a Mass Transit Claim” section of this policy for information on how to participate in the Program.

Program Cost

There is no cost for eligible employees to participate in the Program.

Maximum Allowable Mass Transit Commute Program Claim

Employees working in areas served by mass transit, including rail, bus, or other commercial transportation or licensed public conveyance, who use public transit passes shall be eligible for a discount or reimbursement of the cost at a rate determined by CalHR, up to the applicable monthly exclusion amount for Qualified Transportation Fringe Benefits provided under sections 132(f)(2)(A) and (6) of the Internal Revenue Code (IRC).

For 2025, the Internal Revenue Service (IRS) maximum monthly exclusion amount (monthly limitation) is $325. The combined maximum allowable monthly exclusion amount for employees who are eligible to claim both mass transit and vanpool shall not exceed the combined IRS maximum monthly exclusion amount.

YearIRS Maximum Monthly Exclusion Amount
2025 $325
2024$315
2023$300
2022$280

Taxability

Mass Transit Commute Program reimbursements are not taxable if the reimbursement plan satisfies the QTFB requirements under section 132 (f) of the IRC. For more information on qualified transportation fringe benefits, please see the State Controller’s Office’s (SCO) Payroll Procedures Manual (PPM) section N 161 – Transportation Subsidies.

How to Substantiate/Submit a Mass Transit Commute Program Claim

Employee Responsibilities

Forms and/or Documentation Requirements

Follow the established process for your department.

Include documentation substantiating and certifying your commute-related mass transit expenses – up to the applicable IRS maximum monthly exclusion amount – as provided in SCO’s PPM section N 161.2 – N 161.3.5 and N 161.5 – N 161.6.4.

Either submit your claim through CalATERS Global or submit a STD 262 -Travel Expense Claim Form (TEC).

Please contact your departmental accounting office for clarification regarding your department’s established process.

Departmental Responsibilities

The Accounting Office (Departmental Program Coordinator) will:

If the Accounting Office (Departmental Program Coordinator) approves the claim, they shall follow the department’s internal process for issuing payment.

Mass Transit Commute Program Claim Checks

Payments Issued by SCO

For departments that process TECs via CalATERS Global, payment is issued in the same manner as your payroll (direct deposit or warrant).  Once the form is approved by the department, CalATERS Global takes five business days to issue payment.

If your warrant is lost or stolen, contact your Department Accounting Office/Departmental Program Coordinator. They will contact SCO CalATERS for further information.

Payments Issued by Departments

Departments may have internal processes which include issuing claim checks directly to employees.

Contact the Department Accounting Office (Departmental Program Coordinator) for updates on the status of these claim checks.

False Claim

Making a false claim to the State of California by knowingly presenting or knowingly causing to be presented an untrue statement to obtain payment or funds from the State of California is grounds for removal from participation in the program and could result in legal action, including, but not limited to, adverse action. Employees who make false claims shall reimburse the state for funds they receive for their participation in this Program.

Application

Not applicable.

Authorities

Resources

FAQs

Forms

Web Pages

Authorized By

Benefits Division
Benefits Division Inquiries, Benefits Division

Contact Person

Travel, Relocation, and Commute Programs
CalHR,
Phone: 916-909-2863
Email: travelmanager@calhr.ca.gov

Superseded Policies

Not Applicable.