Archive for the ‘Fringe Benefits’ Category

IRS Issues Guidance on $2,500 Health FSA Contribution Limit

June 4, 2012

Starting next year, employees will be able to contribute no more than $2,500 to a health flexible spending arrangement under new rules enacted in 2010’s health care legislation. The Internal Revenue Service on Wednesday issued guidance on how employers should implement this limit into their existing plans and clarified several issues.

A detailed analysis can be found at JournalofAccountancy.com.

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IRS Updates Maximum Allowable Vehicle FMV for Employee Fringe Benefits

January 20, 2010

Via the Journal of Accountancy

In Revenue Procedure 2010-10, the IRS has updated the maximum allowable fair market value (FMV) of an employer-provided vehicle that can be used with the cents-per-mile and fleet-average rules, for determining the value of an employee’s personal use of vehicles. 

The new maximum FMV is $15,300 for the cents-per-mile rule and $20,300 for the fleet-average valuation rule for passenger automobiles.  For trucks, the respective FMVs are $16,000 and $21,000.