Commuter benefits are fringe benefits that allow employees to set aside pretax money to pay for work-related transportation costs. Generally, for employees to use the benefit, their employer must set up a commuter, or transportation, benefits plan that meets the requirements of Section 132(f) of the Internal Revenue Code.
Should I Offer Commuter Benefits?
In 2018, the Department of Labor issued an opinion letter in response to a query regarding whether certain lump-sum payments are considered earnings under Title III of the Consumer Credit Protection Act, which limits the amount an employer can deduct from an employee’s wages for child and alimony support plus other wage garnishments. The CCPA […]
Executive, administrative and professional employees who meet the Fair Labor Standard Act’s job duties and salary basis criteria are exempt from the FLSA’s minimum wage and overtime pay provisions. Per the FLSA, these employees must be paid no less than $455 per week on a salary basis. However, the following positions may be exempt from […]
Unemployment claim benefits are provided through a federal-state unemployment program, which is funded largely by federal and state taxes imposed on employers. The Internal Revenue Service enforces federal unemployment tax laws. The state unemployment agency oversees state unemployment tax as well as the determination and disbursement of unemployment benefits. When an employee files a claim […]
Deductions Taken Before Taxes Pretax and after-tax deductions – what’s the difference? When can you use each? Pretax deductions are subtracted from employees’ wages before taxes are taken out, thereby lowering their taxable wages and increasing their take-home pay. For a deduction to be eligible for pretax status, the employer must have an Internal Revenue Service-compliant plan […]