Employer-provided transportation benefits.The Comprehensive National Energy Policy Act of 1992, passed by Congress late this year, modifies employer-provided transportation fringe benefits fringe benefits, n.pl the benefits, other than wages or salary, provided by an employer for employees (e.g., health insurance, vacation time, disability income). , beginning in 1993. Under the new law, an employer may provide each employee with up to $60 per month tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. for commuting to and from work if the commuting is done either by mass transit mass transit, public transportation systems designed to move large numbers of passengers. Types and Advantages Mass transit refers to municipal or regional public shared transportation, such as buses, streetcars, and ferries, open to all on a facilities or via a "commuter highway vehicle." A commuter highway vehicle is one with capacity for at least six adults in addition to the driver and carrying at least 50% of its passenger capacity--with at least 80% of its mileage MILEAGE. A compensation allowed by law to officers, for their trouble and expenses in travelling on public business. 2. The mileage allowed to members of congress, is eight dollars for every twenty miles of estimated distance, by the most usual roads, from his being used to transport employees to and from work. Types of transportation that qualify for the exclusion include rail, bus and ferry ferry, vessel providing passage over a river, lake, or other body of water for passengers, vehicles, or freight; the term is also applied to the place where the crossing is made and, by extension, to overwater train or airplane transit. transit and commercially operated or employer-provided commuter vans. The employer may provide for the commuting by supplying passes, tokens, vouchers or cash reimbursements. The legislation also limits the amount of tax-free parking an employer can provide to an employee to $155 per month. Employer-provided or reimbursed parking either must be at or near the employer's business premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person or at or near a location from which the employee commutes by mass transit, commuter highway vehicle or car pool. Observation: Previously, Internal Revenue Service regulations limited employer-provided commuting to $21 per month, taxing the entire benefit if it exceeded $21 per month. Employer-provided parking; however; previously had no dollar limit. |
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