Employee Transportation

[BATmanBOB]

What is the name of your state? California
I have been informed that our employees could be taxed for transportation costs if my company provides free transportation? I was told that it becomes a fringe benefit and that the max we can provide is $105 worth of benefit PER MONTH and that the employee is taxed on any amount over that. Is this correct? Is it still considered a fringe benefit if the employee is charged a nominal fee for the transportation?

 

[pattytx]

See pages 14-15 here:
http://www.irs.gov/pub/irs-pdf/p15b.pdf

If it costs the employer $150 to provide the benefit, there would be a $45 taxable event for the employee. If the employee contributes $10, the taxable amount would be reduced to $35. This is covered in the link I provided.