On Friday December 18, 2015, President Obama signed the Consolidated Appropriations Act into law. A copy is located here.
This new law establishes permanent parity between the parking and transit tax-free limits for Commuter Benefit Plans. Since this parity is retroactive for 2015, employers will need to account for this on W-2s for employees who had post-tax transit deductions exceeding $130 up to $250. Employers should touch base with their payroll department or tax adviser on the best way to handle these adjustments.
Navia’s transit ordering platform has been updated for all new orders placed after December 23rd. Due to the late implementation of the parity, January orders were still subject to the old transit limit. Employers may need to update January deduction amounts for employees who made a January transit order exceeding $130 up to $255.