Saturday, August 10, 2019

Non-profits to pay 21% tax for providing transit passes to employees

Tax-exempt, nonprofit organizations across the country may be shocked this year to discover that, possibly for the first time, they must pay taxes simply for providing employees with access to transit and parking.

Specifically targeted within the Tax Cuts and Jobs Act passed in early 2018, these employee benefit programs are now subject to a 21-percent tax costing the average charity $12,000 in 2018, according to a recent survey conducted by Independent Sector.
https://thehill.com/opinion/finance/423104-new-tax-unjustly-punishes-nonprofit-workers