What is the maximum limit for transportation or vanpool benefits?

The correct answer is based on the limits set by the Internal Revenue Service (IRS) regarding transportation benefits. As of the latest updates, the maximum limit for transportation benefits such as transit passes or vanpooling is indeed $260 per month. This limit is adjusted periodically and reflects the tax-exempt amount employers can provide to employees for these commuting costs without imposing additional tax burdens on either party.

This figure aligns with the IRS guidelines that outline pre-tax benefits for transportation, making it essential for payroll professionals to stay informed about these limits to ensure compliance and maximize the benefits offered to employees. Keeping track of this limit is crucial for accurate payroll processing, particularly in managing fringe benefits efficiently.