Today, the IRS announced Revenue Procedure 2018-57 which provides the 2019 cost-of-living increases for inflation for certain items. In 2019, the:
Annual healthcare flexible spending account (FSA) contribution limits will increase $50 from the current amount of $2,650 to $2,700
Monthly limit for transit and parking will increase $5 from the current amount of $260 to $265
Annual maximum reimbursement for a qualified small employer health reimbursement arrangement (QSEHRA) will increase $100 for individual coverage from the current amount of $5,050 to $5,150, and the maximum reimbursement amount will increase $200 for family coverage from the current amount of $10,250 to $10,450
As a reminder, on May 10, 2018, the IRS announced 2019 health savings account (HSA) contributions limit increases. In 2019, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,450 to $3,500, and the family coverage contribution limit will increase $100 from the current $6,900 to $7,000.
If you have any questions, please contact your Service Delivery Manager for more information.
The new Congress and particularly the House Ways & Means Committee continue work on legislation to simplify and reform the tax code. One potential provision could be the elimination of the Commuter Benefit (IRC Section 132(f)). The threat of eliminating the parking and transit benefit is real and the consequences are significant.
American Benefits Group, a leading national provider of pre-tax commuter benefits announces a new addition to our commuter benefits program. We have recently partnered with Uber and Lyft to offer a solution that will allow employees to pay for uberPOOL and Lyft Line rides with their ABG Prepaid MasterCard and the Commuter Check Prepaid MasterCard. Beginning immediately, employees can use their Commuter Benefit to pay for uberPOOL and Lyft Line rides to commute to and from work.
On October 26, 2016, the IRS announced the 2017 annual inflation adjustments, which included increased limits for Health Flexible Spending Accounts (FSAs) under an IRC §125 cafeteria plan. The Parking and Transit limits for 2017 remain the same.
When Bob Cummings started out in benefits administration, health-insurance co-pays were $3, premiums were well under $100 a month, his office ran on MS-DOS, and it issued paper statements. Much has changed since then, obviously, but not his company’s success formula, based on personalization, creativity, knowledge of a complex and ever-changing subject, and what American Benefits Group prefers to call ‘enabling technology.’
San Francisco recently took a major step in helping both its hard-working citizens and the environment. On March 26, 2014, the SB 1339 Bay Area Commuter Benefits Program became official. Now the Bay Area Air District and the Metropolitan Transportation Commission (MTC) will be working together with their regional Bay Area commuter policy, which mandates that all employers with 50 or more full-time employees, offer commuter benefits to both full-time workers and those that work at least 20 hours a week. Employers have until September 30, 2014, to comply with the SB 1339 Bay Area Commuter Benefits Program.
Achieving lower commuting costs and climate protection without raising taxes.
March 26, 2014 - (Boston, MA) Today, the Metropolitan Transportation Commission approved Regulation 14 Rule 1 of the Bay Area Air Quality Management District, which requires a commuter benefit program to be in place for all employers that have 50 or more full-time employees in the nine-county Bay Area. This regulation is a result of SB 1339, which was signed into law by Governor Brown, requiring a pilot project to be in effect until January 2017. According to the text of the bill, SB 1339, the state believes that by requiring large employers to offer commuter benefit programs, it will encourage greater use of mass transit and vanpools. For those employees who already commute to work using mass transit, it will offer them significant tax savings. Participating employers will also reduce their tax burden. Employers will have until September 30, 2014, to comply with this regulation.
New York State is considering similar legislation for employers with fifty or more employees to establish a qualified transportation fringe benefit program consistent with section 132 of the internal revenue code (IRS).