Mass Transit and Vanpool Commute Program Frequently Asked Questions

Mass transit includes rail, bus, or other commercial transportation or licensed public conveyance, unless superseded by MOU language.

A vanpool must, at a minimum, meet the definition of a “commuter highway vehicle” in Internal Revenue Code (IRC) section 132(f), including seating capacity requirements, unless superseded by MOU language.

For example, there should be:

• A minimum of four people (including the driver) in a seven seat vehicle.
• A minimum of 8 people (including the driver) in a 14 seat vehicle.

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

Any active state employee who participates in a vanpool - using a vehicle meeting the minimum requirements of a “commuter highway vehicle” as defined in section 132(f)(5)(B) of the IRC - to commute to and from work and whose salary is paid directly by the State of California is eligible to participate in the Program.

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

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

Yes. The mass transit and vanpool commute incentive may be claimed by employees who combine using transit passes and/or vanpool for a portion of their commutes with bicycling for a portion of their commutes.

According to your department's internal policy, document your mass transit and/or vanpool commute and submit your reimbursement request.

Mass Transit and Vanpool Commute Program reimbursements are not taxable if the reimbursement plan satisfies the Qualified Transportation Fringe Benefit (QTFB) requirements under section 132 (f) of the Internal Revenue Code (IRC). For more information on qualified transportation fringe benefits, please see SCO's Payroll Procedures Manual section N 161 – Transportation Incentives.

According to your department's internal policy, provide substantiation and certification of your commute-related mass transit and/or vanpool expenses – up to the applicable IRS maximum monthly exclusion amount – as provided in SCO's PPM section N 161.2 , N 161.3, and/or N 161.3.2. For additional clarification regarding PPM section N 161, please contact SCO's Personnel and Payroll Services Division (PPSD), Statewide Tax Support Program at PPSDSTSP@sco.ca.gov.

Incentives for BUs 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, and 21 and all excluded employees, regardless of collective bargaining ID (CBID), unless superseded by current policy or MOU language:

* CEAs must be directly tied to BU 8.

Follow the established process for your department. Either submit your claim through CalATERS Global or submit a STD 262 (Travel Expense Claim)(TEC).

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. If you make a false claim, you shall reimburse the state for funds you receive for your participation in this Program.

In partnership with the policy guidance provided by CalHR, State Controller's Office (SCO) configures CalATERS Global to accept changes related to the travel program.

To subscribe for CalATERS Global updates and letters, please visit: https://www.sco.ca.gov/calaters_global_letters_subscription.html

For information about changes related to the Mass Transit and Vanpool Commute Program in CalATERS Global, please reference CalATERS Global Letter #25-001 released on January 23, 2025 for specific processing information.

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.

Payments Issued by Departments

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

Contact your Department Accounting Office or your Departmental Program Coordinator.

Departments should identify which employees are eligible to receive the increased incentives in order to process the correct incentives. If necessary, please work with your departmental personnel office to determine employee eligibility for the increased incentives.

Follow the established process for your department. Contact the transit agency for information about processing different incentive amounts for different employees. Transit agencies may allow departments to create an additional account to process the increased incentive.