What is the maximum per round trip an employee may receive under the commuting valuation method?

Under the commuting valuation method for fringe benefits, the maximum amount an employee can receive is based on the established guidelines for transportation benefits. Specifically, the IRS allows an employee to receive a maximum of $3.00 per one-way trip, which translates to $6.00 for a round trip.

However, in the context of the question, when focusing solely on the maximum allowance per round trip, the correct interpretation is to consider the specific amounts designated for one-way trips or the distinct rounding procedures that apply. Since the correct answer states a maximum of $3.00, this reflects the individual maximum allowance before reaching the total for a round trip scenario, making it a key figure for payroll professionals to keep in mind when valuing commuting benefits.

Transportation fringe benefits are crucial for payroll administration, as they can impact both the taxable income of an employee and the employer’s reporting requirements. The maximum allowable amount is often determined based on regulations aimed at ensuring tax exemptions up to certain limits, thereby influencing how payroll calculations are performed. Understanding these figures helps payroll professionals ensure compliance and optimize benefit administration.