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IRS Releases New Fringe Benefit Tax Guide for Employers

2018 Publication 15-B Covers New Tax Law Changes

The Internal Revenue Service (IRS) has released the 2018 Publication 15-B, Employer’s Tax Guide to Fringe Benefits, which contains information for employers on the employment tax treatment of fringe benefits. The 2018 version of the publication has been updated to include the following changes (among others) from the new tax law and other federal guidance:

  • Suspension of the exclusion for qualified bicycle commuting reimbursements.
  • Suspension of the exclusion for qualified moving expense reimbursements (with limited exceptions).
  • Limitation of the employer deduction for expenses for certain fringe benefits.
  • Establishment of qualified small employer health reimbursement arrangements (QSEHRAs).

In addition, the publication contains the following updated guidance for 2018:

  • Cents-per-mile rule. The business mileage rate for 2018 is 54.5 cents per mile. This rate may be used to reimburse an employee for business use of a personal vehicle, and under certain conditions, may be used to value the personal use of a vehicle provided to an employee.
  • Qualified parking exclusion and commuter transportation benefit. For 2018, the monthly exclusion for qualified parking, commuter highway vehicle transportation, and transit passes is $260.
  • Contribution limit on a health flexible spending arrangement (FSA). For plan years beginning after December 31, 2017, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $2,650.

Click here to view the publication.

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