The IRS recently published the 2017 version of Publication 15-B, Employer’s Tax Guide to Fringe Benefits. Publication 15-B contains information for employers on the tax treatment of certain fringe benefits, including accident and health coverage, employer assistance for adoption, dependent care and educational expenses, discount programs, group term life insurance, moving expense reimbursements, HSAs, FSAs and transportation benefits. The 2017 version is substantially similar to the 2016 version, but includes the 2017 dollar amounts for various benefit limits and definitions, including the maximum out-of-pocket expenses for HSA-qualifying HDHPs, maximum contribution amounts for HSAs and the monthly limits under qualified transportation plans.
Specifically, for plan years beginning in 2017, salary reduction contributions to a health FSA are limited to $2,600. In addition, for 2017, the monthly exclusion for qualified parking is $255 and the monthly exclusion for commuter highway vehicle transportation and transit passes is $255. Finally, the publication states that the business mileage rate for 2017 is 53.5 cents per mile (it was 54 cents per mile in 2016).
Publication 15-B is a useful resource for employers on the tax treatment of fringe benefits. Employers should familiarize themselves with the publication, as well as other IRS notices and publications referenced in Publication 15-B which further describe and define certain aspects of those benefits.
2017 Publication 15-B, Employers’ Tax Guide to Fringe Benefits »