Thanks to a new federal rule, employers may more flexibly either (a) provide pre-tax reimbursements for their employees’ individual health insurance premiums and other expenses, or (b) pay such expenses directly on employees’ behalf. Effective January 1, 2020, such pre-tax availability has been reinstated, following the Affordable Care Act (ACA)’s elimination and only a limited version under the 2016 21st Century Cures Act, but with some new twists. As a result, employers and their employees now enjoy more pre-tax options for health benefits, albeit with increasing complexity and varied conditions.
As part of a large spending package to avoid a government shutdown, Congress passed legislation repealing the infamous “Nonprofit Parking Tax” – an income tax on the cost of parking provided by nonprofit organizations to their employees performing exempt charitable, religious, and educational activities. The repeal of the Nonprofit Parking Tax is retroactive – the legislation literally states that the effective date of repeal is as if the tax was never in the original law. The bill was signed by President Trump on December 20, 2019.