Reimbursed Parking by Employer

[peggysioux]

If taxpayer has a type of business that requires employees to go to different locations in one day to service the locations on regular basis and employer reimburses employees for the parking and toll, would the parking be limited as excludible to income for employees only up to the $175 per month? Or is there another regulation that would make total expense deductible by employer and non-taxable to employee being those expenditures are part of the expense of that type of business and the locations where the business are? Hope I am stating my question clearly!!

[Burke]

If it is an accountable plan in place, it would be reimbursement based on the charges incurred and receipts turned in, so it would be non-taxable to the employee and not reportable.

[peggysioux]

Reimbursed Parking By Employer

Does the qualified parking max of $175 come into play when an employer covers parking for employees where employees go to the same location every day? I am unclear on what factors determine when an employer has to add parking of over $175 per month to an employees wages. Can you provide those factors? Much appreciated.

[Gretel]

I think the parking you refer to with a limit of $175 is for parking at the employer's site not for going to business partners.