The IRS recently published the 2024 IRS Publication 15-B, the Employer's Tax Guide to Fringe Benefits. This publication provides an overview of the taxation of fringe benefits and applicable exclusion, valuation, withholding, and reporting rules.
The IRS updates Publication 15-B each year to reflect any recent legislative and regulatory developments. Additionally, the publication provides the applicable dollar limits for various benefits for 2024.
The “What’s New” section of the publication includes:
- Information on the 2024 business mileage rate under the “cents-per-mile rule.”
- The monthly exclusion for qualified parking and commuter transportation benefits.
- The contribution limit on a health flexible spending arrangement (FSA).
Qualified parking exclusion and commuter transportation benefit. The monthly exclusion for qualified parking is $315, and the monthly exclusion for commuter highway vehicle transportation and transit passes is $315 in 2024.
Contribution limits for health FSAs. For plan years beginning in 2024, a cafeteria plan may not allow employees to request salary reduction contributions to health FSAs greater than $3,200.
The complete list of the IRS-released 2024 inflation-adjusted limits was covered in the December 5, 2023, edition of Compliance Corner.
Additionally, the publication includes important reminders, including additional permitted mid-election changes for health coverage under a cafeteria plan (Notice 2014-55).
Employers should be aware of the availability of the 2024 Publication 15-B.