Increase in Qualified Transportation Benefit
Increase in Qualified Transportation Benefit
If you provide transit pass and/or vanpooling benefits to your employees, check your plan’s provisions to see what actions you can take to increase the benefit to employees. Some plans may require that you amend the plan, or may automatically apply the increase in limits, so if you’re interested in increasing the benefit to your employees, review your plan design.
Increase in Qualified Transportation Benefit - To learn more about this author, visit Allison Grace's Website.
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The American Recovery and Reinvestment Act of 2009 provides a temporary increase in the amount that can be provided to employees tax free in the form of transit passes and/or vanpooling benefits beginning in March 2009 and continuing through December 2010. For this period, the monthly limit for transit passes and vanpooling benefits (combined) is equal to the monthly limit that applies to qualified parking expenses, thus increasing the monthly limit from $120 to $230.
If you provide transit pass and/or vanpooling benefits to your employees, check your plan’s provisions to see what actions you can take to increase the benefit to employees. Some plans may require that you amend the plan, or may automatically apply the increase in limits, so if you’re interested in increasing the benefit to your employees, review your plan design.
Increase in Qualified Transportation Benefit - To learn more about this author, visit Allison Grace's Website.
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