Frequently Asked Questions

Should transportation benefits be included on the employee’s W-2?
01/10/2019
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Simple Answer:

An employer may choose to include this benefit on an employee’s Form W-2 (under Box 14, for “Other”); but this is entirely optional.

Detailed Answer:

Instructions to Form W-2 states that filers may use Box 14 for information that they would like to provide to their employees. An employer can choose to report Code §132(f)(4) deductions on Form W-2 (under Box 14, for "Other"), but this is entirely optional.

Per IRS Publication 15 b: https://www.irs.gov/pub/irs-pdf/p15b.pdf Generally, you can exclude qualified transportation fringe benefits from an employee's wages even if you provide them in place of pay. For information about providing qualified transportation fringe benefits under a compensation reduction agreement, see Regulations section 1.132-9(b)(Q&A 11–15).

http://www.gpo.gov/fdsys/pkg/CFR-2012-title26-vol2/pdf/CFR-2012-title26-vol2-sec1-132-9.pdf