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Financial

Qualified Transportation Fringe Benefits
South Florida's
Monthly and Parking Benefits

Healthcare Newspaper

The creation of the IRC §512(a)(7) QTF exceeds these limits is includible as
PO Box 812708 had a strong impact tax-exempt organi- taxable compensation to the employee.
Boca Raton, FL 33481-2708 zations. When the Tax Cuts and Jobs Act IRC §274(e)(7) provides an exception
Phone: (561) 368-6950 “TCJA” was signed into law in 2017, it to the disallowance under IRC §274(a) if

added Internal Revenue Code “IRC” the goods, services or facilities expenses
Website: §274(a) which states that no deduction of the taxpayer are also made available to
www.southfloridahospitalnews.com will be allowed for expenses of qualified the general public.
transportation fringe benefits (“QTF”) With the introduction by the TCJA of

provided by an employer to its employ- IRC §512(a)(7), tax-exempt organiza-
CHARLES FELIX ees. IRC §512(a)(7) which requires tax- tions were required, effective January 1,
CAROL FELIX exempt employers (including multiem- 2018, to treat, as UBTI, amounts that are
Publishers ployer benefit plans) to treat QTFs disal- determined to be nondeductible under
lowed under IRC §274 as unrelated busi- IRC §274 and paid by the tax-exempt
NANCY LAMMIE ness taxable income (“UBTI”). organization for any QTF defined in IRC
Editor BY JOHN SMITH
The TCJA added §512(a)(7) to the §132(f) above or any parking facility
JUDY GRAMM IRC, which, effective for amounts paid or During 2018, under IRC §132(a)(5), used in connection with qualified park-
Editorial Manager & Webmaster incurred after December 31, 2017, cer- the maximum amount of a QTF that ing.
tain employee fringe benefits for tax- could be provided to an employee and While many are hopeful for the repeal
JMC GRAPHICS exempt organizations are treated as UBTI excluded from the employee’s gross of IRC §512(a)(7), the outcome is still
Art/Production unless they would otherwise be unknown. For now, most tax-exempt
lammienancy@aol.com deductible under IRC §274. QTFs income was $260 per month. This organizations have chosen to take the
412-877-5321 include (1) transportation in a commuter amount increased to $265 per month for conservative approach and continue to
highway vehicle between the employee’s calendar year 2019. Any QTF provided treat any QTF and parking benefits that
CONTRIBUTING WRITERS residence and place of employment; (2) to an employee in excess of this amount are disallowed under IRC §274 as UBTI
Daniel Casciato mass transit passes; and (3) qualified is taxable compensation reportable on and report these amounts on their Form
Barbara Fallon parking. Qualified parking is further Form W-2, Wage and Tax Statement. 990-T, Exempt Organization Business
Under IRC §274(e)(2), QTF expenses
Vanessa Orr defined under IRC §132(f)(5)(c) as park- are deductible to the extent the fair mar- Income Tax Return.
Lois Thomson ing provided to an employee on or near
the business premises of the employer or ket value of the QTF exceeds the limit John Smith, Supervisor,
on or near a location from which the discussed above in IRC §132(a)(5). This WithumSmith+Brown, PC, can be reached
is so because any amount by which the
employee commutes to work. at jsmith@withum.com.
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often-fluid variables that drive revenue; that enhance the quality of care we pro- the highest-quality care and positive,
SUBSCRIPTIONS how to meet desired revenue goals; and vide. seamless experience. The new realities

why these numbers matter in the larger Such consistency must also be main- facing non-profit hospitals—escalating
One Year $40 picture. tained across spending. To be successful, costs, reimbursement reductions, and
To maintain the same standard across organizations must implement standard the shift from volume- to value-based
Two Years $60
all Broward Health hospitals, we employ revenue cycle management processes care—need to be met with an outcomes-
Three Years $75 educators and other professionals who and procedures that ensure systems are based financial model. The model must
routinely conduct site visits to foster reimbursed appropriately for the services influence data to maximize reimburse-

cohesive patient experiences. For exam- performed. To achieve this fundamental- ment while leveraging the latest tech-
To subscribe, ple, an educator visits our hospitals once ly important goal, Broward Health creat- nologies and advancements in medicine
call (561) 368-6950 a week to help standardize processes and ed revenue cycle committees across the to deliver the highest quality of care for
or subscribe online at procedures, while another focuses on system to develop and enforce best prac- our patients.
customer service to ensure the patient tices from the moment a patient sched-
southfloridahospitalnews.com. experience meets the same high-quality ules an appointment to when they Alex Fernandez is Senior Vice President
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standards—no matter where in our sys- receive and pay their bill. In addition, we and Chief Financial Officer

tem patients receive care. have launched a scorecard system that at Broward Health.
All rights reserved. Reproduction Ultimately, that means the CFO must checks the revenue cycle and overall
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18 July 2019 southfloridahospitalnews.com South Florida Hospital News