March 6, 2018, the IRS released Publication 15-B, Employer's Tax Guide to Fringe Benefits for use in 2018. As a result of changes related to the Tax Cuts and Jobs Act passed late in 2017, the Publication on page 20 outlines the tax treatment of qualified transportation fringe benefits to employees, including those provided through the use of salary reduction program.

After months of debate on tax reform, today the House by a by a vote of 224-201, passed the “Tax Cuts and Jobs Act” (H.R. 1) to overhaul the tax code. The bill now heads to the White House where President Trump says that he will sign it into law. We anticipate that the bill will be signed before Christmas.

Today the IRS announced under Revenue Procedure 2017-58, the 2018 annual inflation adjustments for more than 50 tax provisions, including the tax rate schedules, and other tax changes. Included in the announcement is the inflation adjusted 2018 limits for health flexible spending accounts (FSAs) under an IRC §125 cafeteria plan and the Parking and Transit account limits under an IRC §132 Transportation Plan.

The IRS recently released an information letter providing that a qualified transportation plan can require participants to use a debit card to pay for transit expenses, even if the circumstances might otherwise permit participants to claim cash reimbursement from their employer.

For 2016, the enrollment count submission is due by Tuesday November 15. In addition, for Plan Sponsors making the second of two installments for 2015, the fee is due Tuesday November 15.

Today the IRS announced under Revenue Procedure 2016-55, the 2017 annual inflation adjustments for more than 50 tax provisions, including the tax rate schedules, and other tax changes. Included in the announcement is the inflation adjusted 2017 limits for health flexible spending accounts (FSAs) in an IRC §125 cafeteria plan and the Parking and Transit account limits in an IRC §132 Transportation Plan.

The IRS has provided guidance to employers that want to correct withholding taxes that were taken on post-tax contributions for Transit Benefits in 2015 prior to the announcement in late-December that the employer could provide up to $250 per month tax free to employees that elected in excess of the then pre-tax maximum of $130 per month.

The House of Representatives has filed two pieces of legislation that have bipartisan support in the House and Senate to make the monthly pre-tax dollar amount for Transit Benefits in a Code Section 132 Transportation Plan equal to the monthly pre-tax amount for Parking Benefits. Through the legislation, the parity in the dollar amount for the two benefits would be made permanent. It is expected that the legislation will be enacted before Congress adjourns on December 22, 2015.

*Information in this posting is out of date and superseded by our latest posting on the TR fee.* An HRA is a group health plan that is self-insured by the employer. Some HRAs are subject to the Transitional Reinsurance Fee starting with calendar year 2014 and payable through calendar year 2016.