Can remote and hybrid workers use commuter benefits?

Fully remote workers usually can't use commuter benefits. Hybrid workers can, for the days they commute to a worksite. The federal commuter benefit rule (§132(f)) requires that commuter benefit expenses be incurred for travel between the employee's home and place of employment.

Fully remote

If the employee's "place of employment" is their home, there's no commute. Parking at home, internet bills, and home office spending are not §132(f) eligible. Employers running a fully remote workforce typically don't offer commuter benefits.

Hybrid

Hybrid workers commuting to a worksite some days per week are eligible for the federal benefit on those days. The monthly cap ($340 for transit and $340 for parking in 2026) does not pro-rate. Employees can elect up to the federal maximum and spend it on whichever days they commute.

If their actual spending is below the maximum, they elect a lower amount. For the full list, see what parking and transit expenses are eligible.

How Alice handles it

Employees self-elect based on their expected monthly commute spending. Alice adjusts each pay period, so hybrid workers can change elections as their schedule changes (more in-office weeks one month, fewer the next). Alice Card works for whatever qualifying spending they have.

Mandate jurisdictions

Most mandate ordinances were written before remote work was widespread, so coverage definitions vary. NYC's law applies to "employees" working in NYC; a fully remote NYC-based worker may or may not be covered depending on interpretation.

DC explicitly covers employees who spend at least half their time in DC. Specific coverage depends on the ordinance and your plan design.

Practical guidance

• Hybrid: yes, elect what you'll actually use.
• Fully remote: usually no benefit unless you regularly commute to a worksite.
• Field-based (driving between sites for work): usually no (business mileage is a different category).
• Hourly with multiple worksites: yes for commutes between home and any regular work location.

Talk to sales

sales@thisisalice.com or (929) 552-4625.

Specific benefits, election rules, and run-out periods depend on your employer's plan design. Check with your HR team or plan administrator for details.

Figures shown are for the 2026 plan year and are set by the IRS. Limits are indexed annually by the IRS.

Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.

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