IRS Releases Retroactive Increase in Excludible Transit Benefits Guidance

The IRS has released Notice 2015-2 that addresses employers’ questions regarding the retroactive application of the increased exclusion for 2014 and to reduce filing and reporting burdens. It also clarifies how the increase applies for 2014 and provides a special administrative procedure for employers to use in filing Form 941, Employer’s QUARTERLY Federal Tax Return, for the fourth quarter of 2014 to reflect changes in the excludable amount for transit benefits provided in all quarters of 2014 and in filing Forms W-2, Wage and Tax Statement.

For a copy of Notice 2015-2, please click on the link below:

http://www.irs.gov/pub/irs-drop/n-15-02.pdf 

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