{"id":11417,"date":"2021-11-29T10:01:19","date_gmt":"2021-11-29T15:01:19","guid":{"rendered":"https:\/\/gtm.com\/business\/?p=11417"},"modified":"2021-11-29T10:01:19","modified_gmt":"2021-11-29T15:01:19","slug":"2022-transportation-benefit-limits","status":"publish","type":"post","link":"https:\/\/gtm.com\/business\/2022-transportation-benefit-limits\/","title":{"rendered":"2022 Transportation Fringe Benefit Limits Have Increased"},"content":{"rendered":"

\"2022The IRS has released Revenue Procedure 2021-45<\/a>, which includes cost-of-living adjustments for employee qualified transportation fringe benefit limits for the 2022 taxable year, along with annually adjusted numbers for 2022 for a number of other tax provisions. The combined monthly limit for transportation in a commuter highway vehicle and a transit pass will increase to $280<\/strong> in 2022, up from the 2021 limit of $270. The monthly limit in 2022 for qualified parking will also increase to $280 <\/strong>from $270.<\/p>\n

Qualified Transportation Fringe Benefits<\/h2>\n

Internal Revenue Code Section 132(f) allows employers to offer qualified transportation benefit programs to their employees on a tax-free basis. Under these programs, employees may have money withheld from their taxable compensation to pay or reimburse work-related expenses for qualified parking, transit passes and transportation in certain commuter highway vehicles (e.g., qualifying van pools). Employers may also provide these benefits tax-free to employees.<\/p>\n

Section 132(f) establishes a maximum monthly amount of qualified transportation benefits employees may exclude from their income, subject to cost-of-living adjustments announced by the IRS before the beginning of each calendar year. Both employee pre-tax salary deferrals and employer-paid benefits, if any, count toward the maximum amount.<\/p>\n

No Tax Deduction for Employers<\/h2>\n

Beginning in 2018, the Tax Cuts and Jobs Act of 2017<\/a> eliminated the employer tax deduction for qualified transportation benefits. The employer deduction is disallowed regardless of whether the benefits are paid directly by the employer, through a bona fide reimbursement arrangement or through a compensation reduction agreement.<\/p>\n

Need help keeping track of employee compensation and benefits within your payroll and HR platform? We have the solution. isolved, GTM’s human capital management partner<\/a>, provides you with a single login to access all employee data. Make changes once and it flows throughout the system, saving time and reducing errors. Request a free quote<\/a> to learn more.<\/p>\n

\u00a9 2021 Zywave, Inc. All rights reserved.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

2022 transportation benefit limits are increasing to $280 for commuter highway vehicles and transit passes, among other increases.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[232],"tags":[20,153,26,269],"post_folder":[],"class_list":["post-11417","post","type-post","status-publish","format-standard","hentry","category-gtm-biz-blog-isolved","tag-employee-benefits","tag-fringe-benefits","tag-irs","tag-transportation"],"_links":{"self":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/11417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/comments?post=11417"}],"version-history":[{"count":3,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/11417\/revisions"}],"predecessor-version":[{"id":11422,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/11417\/revisions\/11422"}],"wp:attachment":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/media?parent=11417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/categories?post=11417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/tags?post=11417"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/post_folder?post=11417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}