Publication 15-B Employer's Tax Guide to Fringe Benefits

Publication 15-B serves as the Employer's Tax Guide to Fringe Benefits for 2024. It offers crucial information for employers regarding the tax treatment of fringe benefits, supplementing Pub. 15 and Pub. 15-A.

What's New in 2024?

  • Cents-per-mile rule: The business mileage rate for 2024 is 67 cents per mile, applicable for employee reimbursements and valuing personal use of provided vehicles.
  • Qualified parking exclusion: Monthly exclusion for qualified parking in 2024 is $315, and the same amount applies to commuter highway vehicle transportation and transit passes.
  • Contribution limit on health FSA: For 2024, the cafeteria plan limits employee salary reduction contributions for health flexible spending arrangements (FSAs) to $3,200.

Key Reminders

  • Moving expense reimbursements: P.L. 115-97 suspended the exclusion for qualified moving expense reimbursements for tax years after 2017 but remains available for military personnel.
  • Bicycle commuting reimbursements: Exclusion of qualified bicycle commuting reimbursements is suspended for tax years after 2017.
  • Withholding on supplemental wages: Federal income tax withholding rates on supplemental wages were lowered for tax years after 2017.
  • Form 1099-NEC: Use Form 1099-NEC to report nonemployee compensation paid in 2023; due January 31, 2024.
  • Additional permitted election changes: Notice 2014-55 expands permitted change rules for health coverage under a cafeteria plan during a period of coverage.

For a detailed view of Employer's Fringe Benefits Guide, Publication 15-B, please refer to the attached PDF below.