Page 4 - Employers Tax Guide to Fringe Benefits

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
you provide to an employee. See Cents-Per-Mile Rule in legal residence. Two individuals who enter into a relation-
section 3. ship that is denominated as a marriage under the laws of
Qualified parking exclusion and commuter transpor- a foreign jurisdiction are recognized as married for federal
tation benefit. For 2020, the monthly exclusion for quali- tax purposes if the relationship would be recognized as
fied parking is $270 and the monthly exclusion for com- marriage under the laws of at least one state, possession,
muter highway vehicle transportation and transit passes is or territory of the United States, regardless of legal resi-
$270. See Qualified Transportation Benefits in section 2. dence. Individuals who have entered into a registered do-
Contribution limit on a health flexible spending ar- mestic partnership, civil union, or other similar relationship
that isn't denominated as a marriage under the law of the
rangement (FSA). For plan years beginning in 2020, a state, possession, or territory of the United States where
cafeteria plan may not allow an employee to request sal- such relationship was entered into aren't lawfully married
ary reduction contributions for a health FSA in excess of for federal tax purposes, regardless of legal residence.
$2,750. For more information, see Cafeteria Plans in sec- Notice 2014-1 discusses how certain rules for cafeteria
tion 1. plans, including health and dependent care FSAs, and
New Form 1099-NEC. There is a new Form 1099-NEC health savings accounts (HSAs) apply to same-sex spou-
to report nonemployee compensation paid in 2020. The ses participating in employee benefit plans. Notice
2020 Form 1099-NEC will be due February 1, 2021. For 2014-1, 2014-2 I.R.B. 270, is available at IRS.gov/irb/
nonemployee compensation paid in 2019, continue to use 2014-02_IRB#NOT-2014-1.
Form 1099-MISC, which is due January 31, 2020.
Ordering forms, instructions, and publications. Go to
IRS.gov/Forms to download forms, instructions, and publi-
Reminders cations. Otherwise, you can go to IRS.gov/OrderForms to
place an order and have them mailed to you. Your order
Moving expense reimbursements. P.L. 115-97, Tax should arrive within 10 business days.
Cuts and Jobs Act, suspends the exclusion for qualified Tax questions. If you have a tax question not answered
moving expense reimbursements from your employee's by this publication, check IRS.gov and How To Get Tax
income for tax years beginning after 2017 and before Help at the end of this publication.
2026. However, the exclusion is still available in the case Photographs of missing children. The IRS is a proud
of a member of the U.S. Armed Forces on active duty who partner with the National Center for Missing & Exploited
moves because of a permanent change of station due to a Children® (NCMEC). Photographs of missing children se-
military order. The exclusion applies only to reimburse- lected by the Center may appear in this publication on pa-
ment of moving expenses that the member could deduct if ges that would otherwise be blank. You can help bring
he or she had paid or incurred them without reimburse- these children home by looking at the photographs and
ment. See Moving Expenses in Pub. 3, Armed Forces' calling 1-800-THE-LOST (1-800-843-5678) if you recog-
Tax Guide, for the definition of what constitutes a perma- nize a child.
nent change of station and to learn which moving expen-
ses are deductible.
Bicycle commuting reimbursements. P.L. 115-97 sus- Introduction
pends the exclusion of qualified bicycle commuting reim-
bursements from your employee's income for tax years This publication supplements Pub. 15, Employer's Tax
beginning after 2017 and before 2026. See Transportation Guide, and Pub. 15-A, Employer's Supplemental Tax
(Commuting) Benefits in section 2. Guide. It contains information for employers on the em-
Withholding on supplemental wages. P.L. 115-97 low- ployment tax treatment of fringe benefits.
ered the federal income tax withholding rates on supple-
mental wages for tax years beginning after 2017 and be- Comments and suggestions. We welcome your com-
fore 2026. See Withholding and depositing taxes in ments about this publication and your suggestions for fu-
section 4 for the withholding rates. ture editions.
You can send us comments from IRS.gov/
Additional permitted election changes for health cov- FormComments.
erage under a cafeteria plan. Notice 2014-55, 2014-41 Or you can write to:
I.R.B. 672, available at IRS.gov/irb/
2014-41_IRB#NOT-2014-55, expands the application of Internal Revenue Service
the permitted change rules for health coverage under a Tax Forms and Publications
cafeteria plan and discusses two specific situations in 1111 Constitution Ave. NW, IR-6526
which a cafeteria plan participant is permitted to revoke Washington, DC 20224
his or her election under a cafeteria plan during a period of
coverage. Although we can't respond individually to each com-
Definition of marriage. A marriage of two individuals is ment received, we do appreciate your feedback and will
recognized for federal tax purposes if the marriage is rec- consider your comments as we revise our tax forms, in-
ognized by the state, possession, or territory of the United structions, and publications. We can't answer tax ques-
States in which the marriage is entered into, regardless of tions sent to the above address.

Page 2 Publication 15-B (2020)