The 2016 monthly maximum for Transit is $255

Congress has acted and the President has signed the “Omnibus” bill containing important tax provisions.blog_1-1
The biggest impact to employee benefits plans for 2016 is that  Mass-Transit Commuter Benefits now have permanent parity with Parking Benefits.

The 2016 monthly maximum for Transit is $255.
What does this mean to you?
  • Employees can change their transit elections and shift more of their commuting costs to pre-tax dollars, saving more money on their commute.
  • Employers will save more money on payroll taxes due to greater pre-tax participation among employees.
In addition, The Cadillac Tax has been officially delayed until at least 2020.  This means that employers can continue to offer robust cafeteria plan and HRA benefits to their employees until at least 2020 without any fear of the excise tax clamping down on their budgets or benefits.

Topics: employee benefits, Compliance, healthcare reform, aca, HR, 2016, IRS

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