The IRS issued Notice 2015-2, which provides for a special procedure for employers to address the retroactive increase of the monthly transit benefit exclusion from $130 to $250 for 2014. The notice provides guidance on filing Forms 941 and Forms W-2 to correctly account for the increased exclusion in 2014, and specifies that employers who previously filed Forms W-2 must file Forms W-2c that accurately reflect each employee’s taxable income in 2014 given the retroactive increase in the transit exclusion.
