Transportation Fringe Benefits

An exclusion from gross income is available for the value of certain transportation benefits provided by an employer to an employee.

For federal purposes, the amount that may be excluded from employee wages for 2012 is limited as follows:

  • $240 per month for qualified parking
  • $240 per month for commuter highway vehicle transportation and transit passes
  • $20 per qualified bicycle commuting month

For Wisconsin purposes, the amount that may be excluded from employee wages for 2012 is limited as follows:

  • $240 per month for qualified parking
  • $125 per month for commuter highway vehicle transportation and transit passes
  • $20 per qualified bicycle commuting month

To report the difference between the federal and Wisconsin treatment of commuter highway vehicle transportation and transit passes on the 2012 Form W-2, employers must either:

  • Include the amount that is taxable for Wisconsin purposes, but not taxable for federal purposes in Box 16 of the Form W-2, or
  • Provide the employee with a supplemental "Wisconsin Only" Form W-2 with the taxable benefits shown in Box 16

 

January 16, 2013