Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Copy of Overtime Primer: Highlights from the New Regulations

The federal DOL overtime regulations go into effect this year. Are you ready?

Download Now!

This report includes a summary of key changes, including the salary level test and salary basis test.

As a bonus, we've included a handy flowchart to help you determine exemption status under the FLSA.

Download Now!
August 19, 2010
Commuter Tax Benefits Under the ARRA

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, explained that commuter tax benefits increased under the American Recovery and Reinvestment Act (ARRA) of 2009 emergency stimulus package and have continued unchanged.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!
  • Amounts of employer-provided transportation benefits that may be excluded from an employee's gross income will continue to a maximum of $230 per month or $2,760 per year for either transportation in a commuter vehicle or transit pass. The same amount, $230 per month, is allowed for qualified parking.
  • The applicable annual limitation for the qualified bicycle commuting reimbursement is $20 multiplied by the number of qualified bicycle commuting months during the calendar year (IRC Sec. 132(f)(2)).
  • Transportation benefits are also not subject to employment taxes.

Mark E. Tabakman, Esq., is a partner in the nationwide law firm Fox Rothschild, LLP ( 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 ( She teaches undergraduate and graduate courses in financial accounting and taxation.

Featured Special Report:
Top 100 FLSA Overtime Q&As
Twitter  Facebook  Linked In
Follow Us
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on
Document URL: