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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 withhold pre-tax income to purchase transit and vanpool fare media.

A 2017 report, “Fair Treatment: Commuters and Tax Reform”, from the American Public Transportation Association,  says the direct tax savings to commuters from receiving this benefit can exceed $1,100 annually.

Learn more about qualified transportation fringe benefits from this free Commuter Benefits Guide from Best Workplaces for Commuters.