The Internal Revenue Service (IRS) has released the 2023 version of Publication 15-B (Employer's Tax Guide to Fringe Benefits), which contains information for employers on the employment tax treatment of various fringe benefits, including accident and health coverage, adoption assistance, company cars and other employer-provided vehicles, dependent care assistance, educational assistance, employee discount programs, group term life insurance, moving expense reimbursements, health savings accounts (HSAs), and transportation (commuting) benefits. (Publication 15-B uses the term "employment taxes" to refer to federal income tax withholding as well as Social Security and Medicare (FICA) and federal unemployment (FUTA) taxes.) Publication 15-B is a supplement to Publication 15 (circular E) and IRS Publication 15-A (Employer's Supplemental Tax Guide).
The Details:
A few of the highlights under “What’s New” in 2023 version of Publication 15-B are as follows:
Cents-per-mile rule. The business mileage rate for 2023 is 65.5 cents per mile. You may use this rate to reimburse an employee for business use of a personal vehicle, and under certain conditions, you may use the rate under the cents-per-mile rule to value the personal use of a vehicle you provide to an employee.
Qualified parking exclusion and commuter transportation benefit. For 2023, the monthly exclusion for qualified parking is $300 and the monthly exclusion for commuter highway vehicle transportation and transit passes is $300.
Contribution limit on a health flexible spending arrangement (FSA). For plan years beginning in 2023, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $3,050.
For a copy of IRS Publication 15-B “Employer's Tax Guide to Fringe Benefits” (for benefits provided in 2023), please click on the link provided below.
https://www.irs.gov/pub/irs-pdf/p15b.pdf
Have Questions?
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