How Do I Report Income from Employee Transit Passes on a W-2 Form?

First things first, employers do not need to follow any mandated federal reporting requirements for a qualified transportation plan. You may choose to report transportation fringe benefits, like a transit pass, on Form W-2. Enter relevant transit pass deductions in Box 14, labeled “Other,” on Form W-2. Employers also do not face any specific disclosure requirements with their qualified transportation plans.

Employers should still prepare in advance and offer full transparency despite optional reporting and disclosure requirements. Communicate with employees about all of their transit benefits to avoid any confusion or future difficult situations. Ensure that all sides know transit fringe benefit exceptions, which may include monthly limits and election rules. Consider creating a written document to outline what you offer employees and what they should expect from your business.

Choosing to report income from employee transit passes is straightforward and efficient with our W-2/1099 Forms Filer software’s easy-to-use, menu-driven format. Download our free 1099-etc Demo software today to explore our fully functional software with your business’s data.

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