The IRS released cost-of-living-adjustments (COLAs) for 2022 reflecting any increases in excludable transportation fringes and the flexible spending arrangement (FSA) deferral limit, among other changes [Rev. Proc. 2021-45, 11-10-21].
For 2022, the amounts that may be excluded from gross income for employer-provided qualified transportation fringe benefits and qualified parking increase to $280 per month ($270 in 2021).
For plan years beginning in 2022, the dollar limitation for voluntary employee salary reductions for contributions to health FSAs increases to $2,850 ($2,750 in 2021). For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount increases to $570 ($550 in 2021).
For More Information
For more information, see the APA Compliance Update, IRS Announces 2022 COLAs for Transportation Fringes, FSA Deferrals, and More. Compliance updates are emailed to APA members and are also available on the Compliance Updates webpage.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Senior Manager of Payroll Information Resources for the APA.
