Employer Tax Benefits
Qualified parking exclusion and commuter transportation benefit
For 2019, the monthly exclusion for qualified parking is $265 and the monthly exclusion for commuter highway vehicle transportation and transit passes is
$265. See Qualified Transportation Benefits in section 2.
Qualified Transportation Benefits This exclusion applies to the following benefits.
• A ride in a commuter highway vehicle between the employee’s home and work place.
• A transit pass.
• Qualified parking.
You may provide an employee with any one or more of these benefits at the same time. Qualified transportation benefits can be provided directly by you or through a bona fide reimbursement arrangement. A bona fide reimbursement arrangement requires that the employee incur and substantiate expenses for qualified transportation benefits before reimbursement. However, cash reimbursements for transit passes qualify only if a voucher or a similar item that the employee can exchange only for a transit pass isn’t readily available for direct distribution by you to your employee. A voucher is readily available for direct distribution only if an employer can obtain it from a voucher provider that doesn’t impose fare media charges or other restrictions that effectively prevent the employer from obtaining vouchers. See Regulations section 1.132-9(b)(Q&A 16–19) for more information.
Source: IRS – Employer’s Tax Guide to Fringe Benefits
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