Transportation Fringe Benefits

The value of certain transportation fringe benefits provided by an employer to an employee may be excluded from employee wages.

2014 Treatment:

For federal purposes, the amount that may be excluded from employee wages for 2014 is limited as follows:

  • $250 per month for qualified parking
  • $250 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 2014 is limited as follows:

  • $250 per month for qualified parking
  • $130 per month for commuter highway vehicle transportation and transit passes
  • $20 per qualified bicycle commuting month

2015 Treatment:

As of January 1, 2015, Wisconsin will follow the federal amounts published in 2015 Federal Publication 15-B, Employer's Tax Guide to Fringe Benefits. These amounts are:

  • $250 per month for qualified parking
  • $130 per month for commuter highway vehicle transportation and transit passes
  • $20 per qualified bicycle commuting month

Form W-2 Reporting:

To report the difference between the federal and Wisconsin treatment of commuter highway vehicle transportation and transit passes on the 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 in Box 16

January 12, 2015