In a BLR webinar entitled "Mileage/Commuting Expenses: How to Avoid Big Mistakes With These Employee Expenses," Mark E. Tabakman, Esq., partner in the nationwide law firm Fox Rothschild, LLP and Stacy Wade, Ph.D., CPA, assistant professor of accounting at Western Kentucky University, described bicycle commuting reimbursement rules:
- The applicable annual bicycle commuting reimbursement limitation for any employee for any calendar year is equal to the product of $20 multiplied by the number of qualified bicycle commuting months during such year. A qualified bicycle commuting month for an employee is any month during which that employee regularly uses the bicycle for a substantial portion of the travel between the employee's residence and place of employment and does not receive any other qualified transportation benefit.
- The employee may receive benefits from each category as long as the applicable statutory monthly limit for that category is not exceeded. If the employee receives benefits in excess of the applicable statutory monthly limit, that amount is included in the employee's wages as income for tax purposes. Do not exclude the excess from an employee's wages as a de minimis transportation benefit.
Mark E. Tabakman, Esq., is a partner in the nationwide law firm Fox Rothschild, LLP (www.wagehourlaw.foxrothschild.com). He advises clients throughout the country on all aspects of labor relations and employment law, as well as the development of corporate employment policies. Stacy Wade, Ph.D., CPA, is assistant professor of accounting at Western Kentucky University (www.wku.edu). She teaches undergraduate and graduate courses in financial accounting and taxation.