This new cap is effective January 1, 2019 and results in greater savings for riders and their employers. Payroll deductions in 2018 are capped at $260/month; deductions occurring in 2019 are eligible for the increased cap of $265/month. We will be updating our employer materials to reflect the new monthly cap and will post them to our blog. Should you have any questions, please reach out to us at [email protected].
The IRS released Revenue Procedure 57, which increased the cap on 132(f) transportation fringe benefits from $260/month to $265/month for next year. Please see page 17 of the Revenue Procedure for specific text.
This new cap is effective January 1, 2019 and results in greater savings for riders and their employers. Payroll deductions in 2018 are capped at $260/month; deductions occurring in 2019 are eligible for the increased cap of $265/month. We will be updating our employer materials to reflect the new monthly cap and will post them to our blog. Should you have any questions, please reach out to us at [email protected].
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Monthly Cap on RideECO Benefit Increases for 2018 The cap on 132(f) Transportation Fringe Benefits (like RideECO) is set to increase for the 2018 calendar year. Presently, the monthly cap is $255/month. For 2018, the cap received a Cost of Living Adjustment (COLA) to increase to $260/month. Payroll deductions in 2017 are capped at $255/month; deductions occurring in 2018 are eligible for the increased cap of $260/month. Read on for more. Federal Tax Reform RideECO has been closely following tax reform legislation and its impact on the RideECO commuter benefit. Most recently, The House and Senate have released a conference report on tax reform. The final version preserves the transit benefit; however, the bike benefit is eliminated. The Association for Commuter Transportation (ACT) is monitoring the status of the bill and posts updates here. In addition, ACT sent out an update on Monday: Tax Reform Preserves Commuter Benefit, Recent Media Reports Suggesting Otherwise are Incorrect and shared an employer tool as to Tax Reform - Changes to the Transit Benefit - Myths & Realities. SEPTA Key Update RideECO has received regular inquiries from our clients as SEPTA moves forward with their expansion and implementation of SEPTA Key. The most frequent question – when will RideECO electronically load Key Cards? RideECO has been communicating regularly with SEPTA and they are not yet prepared to test the loading of Key Cards with RideECO benefits. RideECO expects to mimic the same process that we currently utilize for the loading of PATCO FREEDOM Cards. Until SEPTA is ready to test this process, please continue to order vouchers on behalf of your SEPTA riders. We know this is of great importance to our clients and will announce this process to our clients once it becomes available. Read on for more. 2018 PATCO FREEDOM Card Load Schedule As you are aware, RideECO submits weekly transfers for PATCO FREEDOM Cards. You will find a link to the updated schedule below as to when your order should be received by Edenred and when employees can expect to see funds loaded onto their FREEDOM Cards. The file will continue to be sent to PATCO on Fridays, unless it conflicts with a DVRPC office closure. Read on for more info.
The cap on 132(f) Transportation Fringe Benefits (like RideECO) is set to increase for the 2018 calendar year. Presently, the monthly cap is $255/month. For 2018, the cap received a Cost of Living Adjustment (COLA) to increase to $260/month.
Full details are available via IRS Revenue Procedure 2017-58. You may download the pdf at https://www.irs.gov/pub/irs-drop/rp-17-58.pdf. Employer tools will be updated once 2018 tax brackets are finalized. For 2017, the monthly cap on RideECO benefits remains unchanged at $255. Employers can realize an annual savings of more than $230 per employee, while commuters can save nearly $1,000 annually. A full list of annual inflation adjustments is available at the IRS website.
RideECO has updated our savings calculator to reflect the 2017 tax brackets in the document below. Last month, legislation passed that permanently increased the monthly cap on commuter benefits to $255. In addition to a permanent increase, the legislation allowed for the cap to retroactively be increased for 2015. Recently, the IRS released guidelines regarding the retroactive increase in commuter benefits. These guidelines are available via IRS Notice 2016-6. You may link directly to these guidelines here or download them below. If you have questions regarding the impacts of retroactivity on commuter benefits, please consult with a licensed accountant or tax attorney.
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