Transportation Fringe Benefits

In 2023, employers can reimburse employees for parking, transit passes, or van pooling up to $300 per month. Employers may not deduct any portion of this fringe benefit, although it’s not subject to employment taxes. Alternatively, employers can arrange for employees to pay for their transit passes on a pre-tax basis. Beginning January 15, 2023, employers in the District of Columbia with at least 20 employees must comply with the Transportation Benefits Equity Law, which requires offering “clean air” transportation options. Employers in D.C. should check for exemptions, reporting, and other particulars. #IdeaoftheDay