During a recent Payroll Industry Call, the IRS announced some of the benefits that’ll be excluded from employees’ taxable income in 2018.


Here’s a heads-up on what you’ll need to know in Payroll next year.


Transportation, FSAs & more


Any company that gives workers qualified transportation fringe benefits, take note:   Monthly limits for parking and transit passes will increase slightly to $260 from $255.


There’ll also be a small boost to the tax-free amount employees can contribute to a health flexible spending account (FSA). For 2018, it’ll be $2,650 (up from $2,600 in 2017).


The foreign earned income exclusion has also increased. In 2018, it’ll be $104,100 (up from 102,100).


And for companies that offer adoption assistance, the exclusion for 2018 will be #13,840, a $270 increase from the current amount. It’ll start phasing out at a modified adjusted gross income (AGI) of $207,580 – and employees with a modified AGI of $247,580 or above won’t be eligible for the benefit at all.


More info: www.irs.gov/pub /irs-drop/rp-17-58.pdf