Retroactive

On January 8, 2015 the IRS issued Notice 2015-2 “Application of Retroactive increase in Excludable Transit Benefits” which allows employers to implement a retroactive increase in excludable qualified transit benefits.   The adjustment can be made on the 4^th quarter Form 941 (Employer’s Quarterly Federal Tax Return) to reduce wages subject to withholding for all 4 quarters of 2014.

Form 941 filing is due January 31, 2015.

The monthly exclusion for qualified commuter benefits increased from $130 to $250 per month per employee until January 15, 2015 at which time commuter benefits will effectively drop back to $130.