October 16, 2018 The Tax Cuts and Jobs Act includes changes to how you deduct fringe benefits. This can affect your business’s bottom line and your employees’ taxes. Under the new law, taxpayers may no longer deduct: Expenses related to entertainment, amusement and recreation. However, taxpayers can continue to deduct 50 percent of the cost of business meals if the taxpayer or an employee of the taxpayer is present. Qualified expenses associated with transportation fringe benefits or expenses incurred providing transportation for commuting. There’s an exception when the transportation expenses are necessary for employee safety. Qualified expenses for bicycle commuting; these must now be included in employees’ wages. Qualified moving expenses; these must now be included in employees’ wages. Visit Tax Reform for Businesses for more information.
