Is it possible to do a QTFB program in-house? Here's the problem, we're a small company and want to institute a QTFB program, problem is, our payroll administrator wants to charge us an arm and a leg to just set up the plan - let alone administer it.

Is it common to do this in-house? And if so, how would you technically go about doing it if you have a payroll administrator (without incurring the charges from them for administering it). We know about the written instrument requirement and the limits, etc. Any help would be greatly appreciated

OK, I'll be the first one to proclaim my ignorance. What in the world is a QTFB program?

Thanks for being the first MGB. I'll guess it means "qualified taxfree fringe benefit", but that probably does not make sense. Even then, I still don't know what it is.

qualified transportation fringe benefit program?

Sorry about that - it is a Qualified Transportation Fringe Benefit Program (pre-tax for parking, transit passes, etc.). I believe January 1, 1998 was the first year that this was allowed.

The idea is that employees are given the choice between cash and the QTFB - like a 125 plan, but it cannot be offered through a 125 plan.

If you are in one of the major cities (with public transportation) there is a lot of help available from the Transportation Authority. Look at the DOT, the SE Pennsylvania, NJ, NYC and DC areas websites for some guidance. You can find them by using a Google search.