The IRS has issued proposed regulations under a portion of the 2017 Tax Cuts and Jobs Act that eliminated the employer deduction for certain employee transportation benefits, beginning after Dec. 31, 2017. This Legal Update video summarizes the proposed regulations.
Employers may offer their employees qualified transportation benefits as a tax-free fringe benefit under Section 132(f) of the Internal Revenue Code. Eligible expenses include qualified parking, transit passes and vanpooling. This Compliance Overview summarizes the rules for qualified transportation benefit plans, including the maximum benefit limits for 2019.
For Employers with Employees in Seattle
The Seattle City Council passed an ordinance requiring employers to offer a Qualified Transportation Plan. Regardless of where you are based, if you have employees working in Seattle, you need to read this from our friends at Sound Benefit Administration:
Have employees in Seattle? What employers need to know about the new Transit Benefits Ordinance.
How to use this Library
From compliance questions to "what is this?" definitions, this library can help answer your benefits-related questions. Search by category.