Qualified Transit Fringe Benefit Increased
Effective March 1, 2009

The Economic Stimulus Package enacted February 17, 2009 increases the current $120 per month income exclusion for mass transit expenses to $230 per month.

The new provision is effective for months beginning on or after the date of enactment. The package was enacted on February 17, 2009 making the new transit limit effective March 1, 2009.

Under the new law, transit and parking benefits that can be exlcluded from income will be the same for 2009 and will be indexed at the same level for 2010. The provision expires at the end of the 2010 tax year.

Qualified transportation fringe benefits can provide tax savings for both employees and employers.

Employees should complete a new transit enrollment form if they would like to increase their transit deductions going forward.

As a reminder, please visit PrimeFlex Online for the latest information, forms and changes in regulations.

If you have any questions, please call the PrimeFlex Team at (888) 222-3411 or email us at primeflex@primepay.com.

Sincerely,

PrimeFlex Administrative Services
PrimePay