Cindy Lewin was quoted on June 4, 2018, in USAE News about what will change for associations with the new tax law. One of the most important changes is that the new tax law has new provisions, including the requirement to pay quarterly estimated taxes on untaxed, unrelated business income (UBIT) activities, such as employee parking and public transit, which would affect nonprofits and associations.
Ms. Lewin said the new tax structure makes little sense to some, as organizations are not paying on income.
Beginning January 1, transportation fringe benefits concerning parking and public transit provided by employers are subject to UBIT – regardless of whether the employer is paying or allowing employees to deduct money from their salary and pay for the benefits themselves on a pre-tax basis.
Lewin said she knows of employers who've stopped allowing salary reductions because they cannot pay the associated taxes.