Prior to the launch of eTRAC, participants in QTE mass transit pre-tax programs were required to pay for subway, bus, or other commuting expenses up front and then provide paper receipts for later reimbursement from their employer.
With the eTRAC program, employees can now pay for transportation with an eTRAC MasterCard that is automatically loaded with pre-authorized, pre-tax deductions each pay period.
The card provides immediate access to the funds and can only be used to purchase transportation related services
In order to alleviate traffic congestion in metropolitan areas, Congress passed the Transportation Equity Act for the 21st Century in 1998, giving employees a tax break to use mass transit.
Participating in a QTE program can save an employee between $300 and $500 a year in their commuting costs, while employers offering this plan can save an additional $90 per employee per year in payroll taxes.