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Q I recall that you could use a tax-free fringe benefit for commuting and parking. Is this still valid? D.P., New York
A Yes, the fringe benefit for transportation expenses under Sec. 132 still exists. For 2008, the maximum monthly amount an employee may receive on a tax-exempt basis is $115 for qualified commuting expenses and $220 for parking fees. These amounts are adjusted for inflation on an annual basis.
Tip: For this purpose, qualified “commuting expenses”refers to the value of employer-provided transit passes and/or van pooling.
Paying employees for their travel time — and dealing with subsequent reimbursements and deductions — is one of the most confusing parts of HR and payroll administration. Discover the IRS and DOL rules regarding what is considered "travel time” versus "commuting time,” plus what is an allowable expense versus taxable wages....Click here to find out more.