Refund for 2014 Transit Benefits |
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On December 16, 2014, the US Congress approved an increase of the maximum monthly excludable amount for employer-provided commuter highway vehicle transportation and transit pass benefits. This action amends the 2014 allowable monthly transit benefit from $130 to $250, an amount equal to the maximum parking pre-tax limit. The legislation is effective retroactively, from January 1–December 31, 2014.
Pursuant to the change made, any transit benefits that have been provided by an employer to an employee over $130 up to $250 qualifies for exemption from Federal, Social Security and Medicare Taxes.
To account for this tax law change, Penn’s transit pass commuters who were impacted by this legislation were issued a refund for the associated previously withheld Social Security and Medicare taxes. Communications were deployed to those commuters who received the refund. They may also visit www.upenn.edu/u@penn and select “My Pay,” Issue Date 2014-12-31, to view their refund. Federal taxes were reconciled in time to be reflected in employees’ 2014 W2 statements. Information is also available at www.upenn.edu/parking
The maximum monthly excludable amount for employer-provided commuter highway vehicle transportation and transit pass benefits remains at $130 in 2015.
Questions may be directed to the Payroll Office at payroll@exchange.upenn.edu
—Payroll / Tax Office
—Transportation and Parking Office |
