As NPCC told you in our
, 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.