Human resources managers will want to study several new IRS rulings on non-cash benefits to commuting employees. The IRS has delved deeply into various systems for assisting workers with commuting costs with the intention of determining whether these forms of assistance should be included in the employees' gross income.

In essence, the IRS is examining a transition from paper transit vouchers to virtual vouchers. The conundrum here has to do with the media itself. The paper transit vouchers of old were handed out (or paid for) by employers, and employees could only use them for mass transit purposes. While some were perhaps using them for personal travel as well, the system itself was a simple one.

With the advent of smartcards and debit cards as transit pass replacements for the paper tickets, the system became more complex. In a new notice, the IRS lays out which transactions it will include in employee gross income, and which will be excluded. Key factors include how strict the rules are for limiting the smart/debit card purchases to transit only.