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Commuter Benefits

New IRS Guidance on Parking Expenses Released

IRS released Notice 2018-99, Parking Expenses for Qualified Transportation Fringes Under § 274(a)(4) and § 512(a)(7) of the Internal Revenue Code. This notice provides interim guidance for employers to determine the amount of parking expenses for qualified transportation fringes (QTFs) that is nondeductible under § 274(a)(4) of the Internal Revenue Code (Code) and for tax-exempt organizations to determine the corresponding increase

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IRS Update for 2018

On October 19, 2017, the IRS issued Revenue Procedure 2017-58. “For tax year 2018, the monthly limitation for the qualified transportation fringe benefit is $260, as is the monthly limitation for qualified parking.” The 2017 limit is $255 per month. The bicycle benefit remains unchanged at $20 per month (reimbursable). Bike share was not added as a qualified transportation fringe

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Qualified Transportation Fringe Benefit Updates

According to the Commuter Benefits Coalition, Congress is considering eliminating the qualified transportation fringe benefit as part of federal tax reform. This benefit allows employers to provide its employees with up to $260 per month tax-free for parking, riding transit, and vanpooling.  Employers also do not pay its share of payroll taxes on those amounts. Employers also can allow employees to

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Qualified Transportation Fringe Benefit Rates for 2017

According to Internal Revenue Service’s  Revenue Procedure 2016-55, the monthly limitation under § 132(f)(2)(A) regarding the aggregate qualified transportation fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $255 for taxable years beginning in 2017.  The monthly limitation under § 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $255. Bicycle commuting reimbursement limitations

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2014 IRS Qualified Transportation Fringe Benefit

The following are the maximum rates for qualified transportation fringe benefits for 2014: – Transit: up to $130 per month – Commuter highway vehicle (e.g.,vanpool): up to $130 per month – Parking: up to $250 per month – Qualified bicycle commuting : reimbursed up to $20 per month Parity between the parking and transit/commuter highway vehicle benefits that was in

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Fiscal Cliff Deal Includes Increase in Transit Benefit Levels

The recently passed American Taxpayer Relief Act of 2012 (i.e., fiscal cliff deal), included Section 203 that extended the parity for exclusion from income for employer-provided transit and vanpool benefits at the same level as parking benefits ($245 per month) through December 31, 2013. In 2009, the American Recovery and Reinvestment Act of 2009 (a.k.a. the stimulus bill) effectively created

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