What To Do about 2015 Transportation Fringe Benefits

Because parity between transit passes and free parking wasn’t reinstituted until December 18, 2015, employers now must deal with erroneous withholding for transit passes in 2015. The IRS says taxable wages reported on W-2s and Form 941 must be reduced by excess transit benefits. A special procedure is available for employers that have not yet filed Form 941. Those that did must now file Form 941-X and make corrections.