Transportation Fringe Benefits

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

2015 Treatment

For federal purposes, the amount that may be excluded from employee wages for 2015 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 2015 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

2016 Treatment

For federal purposes, the amount that may be excluded from employee wages for 2016 is limited as follows:

  • $255 per month for qualified parking
  • $255 per month for commuter highway vehicle transportation and transit passes
  • $20 per qualified bicycle commuting month

Under current Wisconsin law, the amount that may be excluded from wages for 2016 is limited as follows:

  • $255 per month for qualified parking
  • $130 per month for commuter highway vehicle transportation and transit passes
  • $20 per qualified bicycle commuting month

If the Wisconsin legislature changes the tax treatment above, we will report the change in the Wisconsin Tax Bulletin. Individuals who subscribe to the Withholding Tax or Tax Professional e-filing news will receive this information via email.

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

Page last updated January 13, 2016