Commuting reimbursement could be a win-winSpring is officially here. As far as the eye can see, the snow is gone and new plant shoots are peeking out of the dirt. It’s time to dust off the outdoor equipment and take advantage of the warmer weather.
Are you a biker?
Did you know, an employer can reimburse reasonable expenses of qualified bicycle commuting? Reasonable expenses include the purchase of a bicycle, improvements or repairs to a bicycle, and storage.
The IRS allows you to offer your employees a nontaxed employee fringe benefit of $20 per qualified bicycle commuting month during that year. A qualified commuting month is any month the taxpayer uses the bicycle regularly for a substantial portion of the travel between his or her residence and place of employment.
Why should you offer this benefit to your employees? Bicycling provides the doctor recommended 30 minutes of moderate exercise a day, which keeps employees fit. Healthy workers are almost three times more effective at work than unhealthy workers, thereby reducing health insurance costs and lowering unproductive sick days. And, offering more optional benefits to your employees is a great morale booster!
Not quite ready to bike to work or if the commute is too be sure you are taking advantage of the Mileage rates for 2015.