As part of the federal budget bill that was signed into law on December 18th, 2015, the maximum monthly tax exclusion for employer-provided mass transit benefits was increased.
As a result, the limit for transit benefits is now equal to the limit for employer-provided qualified parking benefits. The increase applies retroactively to months after 2014.
Employers that sponsor qualified transportation fringe benefit plans should update their plan design and work with their vendors to implement the maximum limits. In addition, those employers should be sure that they are complying with any local requirements (for example, New York City now requires employers to offer transit benefits to their employees).
Here is a look at the updated maximum monthly limits:
I hope that you find this compliance update helpful.
We encourage all clients to log-in to the CBGconnect portal to download our full Compliance Bulletin on this topic. If you have any questions, please contact our team at 781-759-1222.