Fringe benefits were a popular topic of discussion in 2018 for the HR industry. We predict fringe benefits will continue to be a powerful recruiting and retention tool for businesses of all sizes, but particularly valuable for mid to small-sized businesses seeking to gain top talent.
In November 2018 the IRS announced 2019 limits for health FSAs and transit benefit compensation. The adjustments are not major, but rather instituted to adjust for inflation. Voluntary employee contributions to employer-sponsored HFSAs (healthcare flexible spending arrangements) will increase to $2,700 in 2019, from the 2018 limit of $2,650.
Qualified transportation fringe benefits will also see an increase in 2019. Reimbursement for a highway commuter vehicle and mass transit passes went up from $260 to $265. Qualified parking expenses also increased to $265. The entire IRS announcement can be found here.
While these adjustments aren't as glamorous as a free gym membership, weekly yoga, or healthy lunches, they’re still popular fringe benefits and will be useful to employers around the country.
If you’re still a bit uncertain about what fringe benefits are, and how they might affect your business, check out our video below to get up to speed.