---
title: IRS Announces 2022 COLAs for Transportation Fringes, FSA Deferrals
description: IRS announces 2022 COLAs for transportation fringes and FSAs.
---

[Pay News Now](https://blogs.payroll.org/pay-news-now)

# [IRS Announces 2022 COLAs for Transportation Fringes, FSA Deferrals](https://blogs.payroll.org/pay-news-now/irs-announces-2022-colas-for-transportation-fringes-fsa-deferrals)

 Written by [Jyme Mariani, Esq.](https://blogs.payroll.org/pay-news-now/author/jyme-mariani-esq) | Nov 10, 2021 9:37:04 PM

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 \[[**Rev. Proc. 2021-45**](https://www.americanpayroll.org/docs/default-source/irs-and-ssa-announcements/21m10-2022_COLAs.pdf), 11-10-21\].

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**](https://www.americanpayroll.org/compliance/compliance-updates/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**](https://www.americanpayroll.org/compliance/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**](https://ebiz.americanpayroll.org/ebusiness/ProductCatalog/Product.aspx?ID=6067)!

*Jyme Mariani, Esq., is Managing Editor of* Payroll Currently *and Senior Manager of Payroll Information Resources for the APA.*

[View full post](https://blogs.payroll.org/pay-news-now/irs-announces-2022-colas-for-transportation-fringes-fsa-deferrals)

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