As NPCC told you in our
March e-newsletter, as a result of the new federal tax law, nonprofit employers must now pay
Unrelated Business Tax Income (UBIT) on some fringe benefits, including on Metrocards and other “qualified transportation fringe benefits” (also known as commuter benefits). This will increase a nonprofit organization’s expenses. For example, an employer with 40 employees, where each employee enjoys $150 per month in pre-tax commuter benefits, that employer could be taxed $21,600 ($150x12x40x30%), of which $15,1202 would go to the federal government and $6,480 would go to New York State.