FYI: Employer Transportation Plan - Stimulus Law Changes
By Cindy Van Bogaert
February 23, 2009
Here is your latest FYI: Employee Benefits Update from Cindy Van Bogaert, Partner and Chair of the Employee Benefits Practice Group at Boardman Law Firm LLP.
This FYI provides information about some of the changes for employer qualified transportation plans due to the American Recovery and Reinvestment Act of 2009 which was signed into law on February 17, 2009.
Here is the main change for employer qualified transportation plans due to this law:
- The new law provides a temporary increase in the transit pass and commuter vehicle expenses limit. Effective as of March 1, 2009, the $120 combined monthly limit for transit passes and commuter vehicle expenses is increased to $230 per month. The rate increase affects the rest of 2009 and all of 2010. It no longer applies on January 1, 2011.
What should employers do?
- Address plan administration choices and changes now. The effect of the law may depend on the drafting of the employer's plan. For example, new employee elections may be necessary.
- Contact your attorney regarding changes to your plan documents, notices, and forms. With a March 1 effective date, there is not much time.
Please contact me if you would like more information.
This FYI is not legal advice. Individuals should seek advice based on their particular circumstances from their own counsel. Nothing in this FYI is intended to be used, and no information can be used, for the purpose of avoiding penalties under the Internal Revenue Code, or promoting, marketing, or recommending to another party any transaction or matter addressed in this FYI.
If you have any questions or need assistance, please contact Cindy Van Bogaert at (608) 283-7543 or Email.
Would you like to have FYI: Employee Benefits Update sent directly to your e-mail inbox? If so, please send your request, with e-mail address, to Cindy Van Bogaert at Email.