FinanceRegs.com » New fringe benefit allowed: Should your company offer it?

New fringe benefit allowed: Should your company offer it?

October 29, 2008 by Carol Katarsky
Posted in: Best practices, Communication, Fringe benefits, In this week's e-newsletter, IRS regs, Latest news & views

Here’s a way Accounting can help your company polish its “green” image.

As part of the Emergency Economic Stabilization Act of 2008, the feds made official a new transportation fringe benefit.  Here’s the scoop:  

For tax years starting after Dec. 31, 2008, your company can offer a “qualified bicycle commuting reimbursement” as a fringe. For any employees who regularly use their bikes to travel to and from work, you can reimburse up to $20 per month for costs related to buying, repairing and/or storing the bike.

Note: The $20 only applies to “qualified bicycle commuting months.” Although we don’t have a solid definition of that yet, it’s safe to assume employees will have to make a certain percentage of their commute by bike to qualify each month.

With gas still expensive and most folks looking for a way to cut costs, this is a nice little benefit your employer can offer — at relatively little cost.

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2 Responses to “New fringe benefit allowed: Should your company offer it?”

  1. J.M. Moore Says:

    How about a benefit for thoses of us who walk to work everyday? I was driving twenty miles to my job and decided to move closer to save on gas. Now I live close enough to walk to work and I’m saving at least $125 a month.

  2. J.M. Moore Says:

    How about a benefit for those of us who walk to work everyday? I was driving twenty miles to my job and decided to move closer to save on gas. Now I live close enough to walk to work and I’m saving at least $125 a month.


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