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Compliance Alert: Transit Tax Advisory

01 Feb Compliance Alert: Transit Tax Advisory

Posted at 11:23h in Blog by

Keeping You Compliant With The Latest Government Regulations!
Prestige is working diligently in 2013 to ensure our clients stay in compliance with all the new laws and regulations affecting small to medium size businesses.

GOVERNMENT REGULATION

American Tax Relief Act (ATRA) Passed on January 1, 2013

One of the major tax changes included in the American Tax Relief Act (ATRA) bill raised the pre-tax amount allowable for a transit pass from $125 to $240 per month retroactive to January 1, 2012.   

  • The IRS is allowing the change to be reflected only on the employee’s 2012 W-2 form.
  • The guidance on how to adjust any amounts previously taken post-tax to a pre-tax deduction was just issued by the IRS in the last few days. 

PRESTIGE SOLUTION

Prestige Employee Administrators, Inc. is helping clients take advantage of this new tax law and not miss out on the tax reduction. Since W-2’s were already issued by Prestige in January, Prestige is doing their due diligence by researching which employees are affected by this change. 

  • Prestige is making the necessary adjustments to all employee’s 2012 W-2 forms affected by this new tax law.
  • An email has been sent out to all clients with a list of employees affected by the change with an advisement to alert each employee not to prepare their tax returns until they receive their corrected W-2 form.
  • For clients with affected employees, Prestige is correcting the W-2 form and sending the revised form directly to each employee. (with a refund of any taxes overpaid by the employee)                                                          

Prestige is saving our clients time and money by reviewing employee paperwork to ensure that all affected employees receive their adjusted W-2 forms quickly.   In addition, Prestige is ensuring that all affected employees are receiving the retroactive commuter tax credit that they deserve.  Clients can rest easy knowing Prestige is staying on top of all the new tax laws and protecting their best interests. Prestige is committed to keeping our clients compliant in 2013 and will continue to send compliance alerts.