Estimated Tax Payments Due June 15, 2018

As was discussed in a March eblast, one of the results of the Tax Cuts and Jobs Act was that certain fringe benefits provided to employees would now be subject to Unrelated Business Income Tax (“UBIT”). These fringe benefits include:

  • Transit passes
  • Commuter vehicle pooling
  • Qualified parking
  • On-site athletic facility expenses

Organizations that provide any of these benefits to their employees, even if they are merely allowing employees to deduct amounts pre-tax from their salaries, will be subject to pay UBIT on these amounts.

In most cases, the calculation for UBIT will be the amount of benefits provided multiplied by 21%. If the tax comes out to over $500, your organization is required to pay estimated taxes. If these estimated payments are not paid timely, you may be liable for interest and penalties in addition to the actual tax.

Payments are due each year on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. As guidance for this was not available in April, estimated payments are beginning to be paid with the next quarter. December year-end organizations should please make an estimated payment before June 15th. Payments should be made using the Electronic Federal Tax Payment System (EFTPS). To enroll, visit www.eftps.gov or call 1-800-855-4477.

If you have any questions or concerns please contact Aaron Shapiro, CPA, Director of Tax Services at 212-867-4000 Ext. 203 or ashapiro@loebandtroper.com.