Wednesday, November 07, 2007
2008 Transportation Fringe Benefits to Increase
Many nanny employers provide their nannies with tax free transportation benefits.
The monthly limit for transit passes and commuter highway vehicles that are qualified transportation fringe benefits is $115.00 in 2008. The monthly limit for the qualified parking benefit will increase to $220 in 2008, up from $215 in 2007.
Many nannies and housekeepers in urban areas commute via public transportation. Many nanny employers find transportation benefits an easy, tax free way to fund the nanny's commuting costs, costs she would incur in any event. HomeWork Solutions advises clients to make the payment for the transportation benefit directly to the transit authority when possible. If payment is made to the nanny or other household worker, it should be via a separate paycheck appropriately documented.
The monthly limit for transit passes and commuter highway vehicles that are qualified transportation fringe benefits is $115.00 in 2008. The monthly limit for the qualified parking benefit will increase to $220 in 2008, up from $215 in 2007.
Many nannies and housekeepers in urban areas commute via public transportation. Many nanny employers find transportation benefits an easy, tax free way to fund the nanny's commuting costs, costs she would incur in any event. HomeWork Solutions advises clients to make the payment for the transportation benefit directly to the transit authority when possible. If payment is made to the nanny or other household worker, it should be via a separate paycheck appropriately documented.
