HR Alert

New Tax Law Eliminates Tax Breaks for Several Fringe Benefits

Transportation & Paid Family and Medical Leave Benefits Impacted

Tax Breaks for Several Fringe Benefits Eliminated
Effective in 2018, the tax treatment of several fringe benefits will be impacted as follows:

  • Employer contributions to an employee's qualified transportation fringe benefits (including those for employees' transit passes and parking) will no longer be deductible from the employer's gross income.
  • Qualified moving expense reimbursements made by an employer will generally no longer be excludable from an employee's gross income.
  • Qualified bicycle commuting reimbursements made by an employer will no longer be excludable from an employee's gross income.

New Employer Tax Credit for Paid Family and Medical Leave
For tax years 2018 and 2019, employers that offer paid family and medical leave (as defined under the federal Family and Medical Leave Act [FMLA]) to employees may qualify for a newly established tax credit of up to 25% of the annual wages paid to those employees.


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