Transportation plays a key role in the lives of workers across the country, and Employee benefit consultants can offer options to reduce employees' commuter and transportation expenses.
The IRS notes that employers can provide workers with fringe benefits such as commuter and transportation compensation, but determining the a benefit's value can be difficult. Employers must judge any benefit's value using a general valuation rule which notes that its value must exceed market value.
Employers can determine the value of a vehicle provided to an employee for commuting using the general valuation rule. The IRS states that multiplying the cost of a one-way commute by 1.5 determines the commuting value. This applies to each employee in a carpool as well. Employers must include the amount in the employee's wages or must ensure the total is reimbursed by the employee.
Human resource managers may hit a roadblock explaining commuter expenses, but employee benefit services can provide assistance to help employers get workers through paperwork traffic. The consultants offer employers the opportunity to maximize their benefit investment, providing an extensive range of customizable solutions available in multiple states.
