HRPAY 18-02 Qualified Transportation Fringe Benefits

HRPAY 18-02 Qualified Transportation Fringe Benefits

Published: January 12, 2018
Effective: Pay Period 01, 2018

Summary

For 2018, the fringe benefit for parking fees will increase to $260 per month (up from $255). The combined monthly limit for transit passes and van pooling expenses for 2018 will be $260 (up from $255).

Implementation

Agency Paid Subsidies

Internal Revenue Service (IRS) regulations state that employee parking subsidies over $260 and transit subsidies over $260 are considered taxable fringe benefits. An Agency’s Time and Attendance (T&A) reporting system can be used to record a parking or subsidy fringe benefit in excess of the IRS limit. This is done via Transaction Code (TC) 17, Suffix 09, Parking/Taxable Fringe; TC 17, Prefix 10, Transit Subsidy; or TC 17, Suffix 08, Chauffeur Driven Auto. When entering employee parking/taxable fringe, transit subsidies, or chauffeur driven auto on the T&A, the benefits may be recorded biweekly, monthly, quarterly, semiannually, or annually (in accordance with Agency policy) and must be reported by the end of the tax year.

In addition to the T&A option, some Agencies utilize the reporting of the parking fringe benefit in excess of the IRS limit of $260 (i.e., taxable portion) via Allowance Type 179, Parking Fringe. When using the Web-based Entry, Processing, Inquiry, and Correction System (EPICWeb), EmpowHR, or an Agency Front-End System Interface (FESI) to record the taxable portion of this fringe benefit, the amount entered in the Allowance Rate field will be reported each pay period until deleted. The allowance record can be processed via one of the following methods:

Employee Paid Subsidies

In situations where the Agency does not pay the employee’s transit or parking subsidy, the employee can report his/her payment of that transit or parking expense as pre-tax on his/her taxes. This is handled via the processing of an allowance record with Allowance Type 525, Transit Benefits (Non Taxable), and Allowance Type 526, Parking Benefits (Non Taxable). When using EPICWeb, EmpowHR, or FESI to enter these benefits, the amount entered in the Allowance Rate field will be reported each pay period until deleted. The allowance record(s) can be processed via one of the following methods:

Resources

The procedure manuals for these applications are available online at the National Finance Center (NFC) Web site. To view this procedure, select HR and Payroll Clients from the My NFC drop-down menu on the NFC homepage. At the HR and Payroll Client page, select the Publications tab in the center ribbon and select the applicable publication category to access the procedure manuals within that category.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal.