Here’s a shocker some employers are completely unaware of: Those of you who are accustomed to providing completely free or partially subsidized transit passes for your employees can no longer deduct that generosity as a business expense. Same goes with free or subsidized van pools, free or subsidized parking. They are no longer deductible business expenses. In fact, by definition, they are literally gifts given from the kindness of your heart. On the other hand, employees who benefit in those ways from their employer’s generosity are not required to treat it as income.
Confused? Have questions? Feel free to talk with us about this and any other tax or accounting questions at Go Figure.