Hitting the Skids

In the new private ruling, the IRS says that reimbursements given to employees as part of a bike-sharing program aren’t tax-free. ¬†Employers may provide a tax-free monthly benefit of up to $20 to cover expenses of biking to work – including the bicycle’s cost and any repairs or storage cost- but this exemption doesn’t apply to bike-sharing programs. ¬†Therefore, all bike-sharing reimbursements are subject to both income and payroll taxes.