HRPAY 19-05, Qualified Transit Fringe Benefits

Published: June 25, 2019
Effective: Pay Period 01, 2019


This bulletin supersedes HRPAY 19-03, Qualified Transit Fringe Benefits, dated March 28, 2019. All references to the monthly amount remaining at $260 are being changed to $265 per month. All other information remains the same.

For 2019, the fringe benefit for parking fees is being increased to $265 per month (up from $260). The combined monthly limit for transit passes and van pooling expenses for 2019 is being increased to $265.


Agency Paid Subsidies

Internal Revenue Service (IRS) regulations state that employee parking subsidies over $265 and transit subsidies over $265 are considered taxable fringe benefits. An Agency’s Time and Attendance (T&A) reporting system can be used to record a parking or subsidy fringe benefit in excess of the IRS limit. This is done via Transaction Code (TC) 17, Suffix 09, Parking/Taxable Fringe; TC 17, Prefix 10, Transit Subsidy; or TC 17, Suffix 08, Chauffeur Driven Auto. When entering employee parking/taxable fringe, transit subsidies, or chauffeur-driven auto on the T&A, the benefits may be recorded biweekly, monthly, quarterly, semiannually, or annually (in accordance with Agency policy) and must be reported by the end of the tax year.

In addition to the T&A option, some Agencies utilize the reporting of the parking fringe benefit in excess of the IRS limit of $265 (i.e., taxable portion) via Allowance Type 179, Parking Fringe. When using the Web-based Entry, Processing, Inquiry, and Correction System (EPICWeb), EmpowHR, or Agency Front-End System Interface (FESI) to record the taxable portion of this fringe benefit, the amount entered in the Allowance Rate field will be reported each pay period until deleted. The allowance record can be processed via one of the following methods:

Note: Agencies should not enter employee parking or transit subsidies using both the T&A and Allowance Type 179 (EPICWeb, EmpowHR, or FESI) processes. If more than one method is used, the T&A will be suspended. Therefore, timekeepers should check with their servicing personnel office before this information is entered on the employee’s T&A.

Employee Paid Subsidies

In situations where the Agency does not pay the employee’s transit or parking subsidy, the employee can report his/her payment of that transit or parking expense as pre-tax on his/her taxes. This is handled via the processing of an allowance record with Allowance Type 525, Transit Benefits (Non Taxable), and Allowance Type 526, Parking Benefits (Non Taxable). When using EPICWeb, EmpowHR, or FESI to enter these benefits, the amount entered in the Allowance Rate field will be reported each pay period until deleted. The allowance record(s) can be processed via one of the following methods:


The procedure manual for this application is available online at the National Finance Center (NFC) Web site. To view and/or print this procedure, select HR and Payroll Clients from the MyNFC drop-down menu on the NFC homepage. At the HR and Payroll Clients page, select the Publications tab and select the applicable category to access the procedure manual within the category.


For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal.