A Section 132 Transportation Program lets employees set aside a certain amount of each paycheck into an account – before paying income taxes. … Under Section 132, the employer can redirect a portion of the employee’s salary to pay for such expenses on a pre-tax basis.

What item is not considered a Section 132 fringe benefit?

The business use of the company vehicle and job-related educational assistance are working condition fringe benefits excluded from income under IRC Sec. 132. Employer contributions to a health plan are excluded from income under IRC Sections 105 and 106.

What is a working condition fringe benefit?

A working condition fringe benefit is any property or service provided to an employee that he or she could deduct if he or she paid for the property or service.