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  • 1.  Qualified Transportation Benefits - Pre-Tax

    Posted 06-29-2022 12:48 PM
    My client pays for parking his employees' cars. He pays for passes directly to the City of Yonkers. He has now decided to have his employees pay for half and will be deducting  the fees from their wages. The amount is under the threshold and I do understand that he can deduct the parking fees on a pre tax basis. But I am not sure if he would be required to first have  a compensation reduction agreement in place first. ie: a Section 125/ FSA  plan to do so.

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    Rhona Liptzin
    CPA, CFP
    WANK & LIPTZIN, LLP CPAs
    Mineola NY
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  • 2.  RE: Qualified Transportation Benefits - Pre-Tax

    Posted 07-01-2022 09:45 AM
      |   view attached

    Yes it would require a Section 132 plan.

     


    Robert Ahearn
    CPA Specialist 
    Reliable Payroll Services
    c-631-896-3972
    f-516-595-1691 
    Deer Park and Little Neck NY locations



       






  • 3.  RE: Qualified Transportation Benefits - Pre-Tax

    Posted 07-02-2022 01:27 PM
    Thanks!

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    Rhona Liptzin
    CPA, CFP
    WANK & LIPTZIN, LLP CPAs
    Mineola NY
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  • 4.  RE: Qualified Transportation Benefits - Pre-Tax

    Bronze Most Valuable Member
    Posted 07-03-2022 10:10 AM
    And new NYS pay rate notices as well reflecting the deduction from pay.

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    Ruth B. Kraft, Esq.
    Partner and Chair, Employment Law
    Vigorito, Barker, Patterson, Nichols & Porter, LLP
    300 Garden City Plaza
    Garden City, New York 11530
    Ruth.Kraft@vbpplaw.com
    516-282-3355
    Cell 516-353-3306
    R.Kraft@vbpnplaw.com
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