The tax extenders legislation (formally called the “Tax Increase Prevention Act of 2014“) signed into law on December 17 included a one-year extension of “parity” for the limits on tax-exempt mass transit and parking benefits.  The change retroactively increases the limit on pre-tax mass transit benefits, which means that it affects the information that must be reported on Form W-2 for 2014 (generally due January 31, 2015) and tax refunds are available.

Employers with transportation benefit programs should watch for guidance and consider adjustments that might be required before filing Form 941 for the fourth quarter and issuing Forms W-2 for 2014.


Continue Reading Increase to Transit Reimbursement Limits Might Necessitate Corrective Tax Filings

The United States government narrowly avoided falling over the so-called “fiscal cliff” by enacting the American Taxpayer Relief Act of 2012 (“ATRA”).  ATRA’s impact on tax rates has been covered extensively in the national media.  ATRA also included several employee benefit provisions that are of interest to employers and their employees. 
Continue Reading Fiscal Cliff Legislation Extends Tax Advantages for Popular Fringe Benefits, Expands In-Plan Roth 401(k) Conversions