---
title: "2014 Nanny Tax Update: Mileage Reimbursement and Transit Benefits"
description: While mileage reimbursement and commuter transit benefits are scheduled to decrease January 1, 2014, other nanny tax numbers will increase.
---

[Household Employment Blog | Nanny Tax Information](https://info.homeworksolutions.com/blog)

# [2014 Nanny Tax Update: Mileage Reimbursement and Transit Benefits](https://info.homeworksolutions.com/blog/bid/100643/2014-Nanny-Tax-Update-Mileage-Reimbursement-and-Transit-Benefits)

 Written by [Kathleen Webb](https://info.homeworksolutions.com/blog/author/kathleen-webb) | 1/6/14 1:00 PM

While mileage reimbursement and commuter transit benefits are scheduled to decrease January 1, 2014, other nanny tax numbers will increase.

The 2014 Nanny Tax round-up includes:

- Mileage reimbursement decreases a half a cent a mile from $0.565 to $0.56.
- Communter transit benefits - a tax free way employers can subsidize their employee's mass transit commuting expenses - will decrease from $245 to $130 per month. According to the [Washington Post](http://www.washingtonpost.com/business/economy/tax-benefits-for-mass-transit-commuters-set-to-drop/2013/12/26/77e1d348-6e5a-11e3-aecc-85cb037b7236_story.html), there is bi-partisan support to maintain 2013 levels, but action to extend this benefit will not be taken up until the spring.
- In 2014 a family will have a household employment tax obligation when they pay $1900 or more to a household employe in the calendar year. This is an increase from the 2013 threshold of $1800.
- Contribution limits for most household employee's Roth IRA or traditional IRA is $5,500, plus an extra 'catch-up' $1,000 for those 50 or older in 2014.
- Many [state minimum wage](http://www.4nannytaxes.com/index.cfm/resources/news-and-updates/stateminimum/) levels will increase on January 1, 2014. Nannies and most household employees are covered under minimum wage and the higher of the Federal or local minimum applies.
- [Hawaii](http://www.capitol.hawaii.gov/session2013/Bills/SB535_.HTM) and [California](https://www.info.4nannytaxes.com/blog-0/bid/100317/California-Domestic-Workers-Bill-of-Rights-Effective-January-1-2014) have new Domestic Workers' Bill of Rights legislation. California's vill goes into effect January 1, 2014, Hawaii's took effect the summer of 2013.

[View full post](https://info.homeworksolutions.com/blog/bid/100643/2014-Nanny-Tax-Update-Mileage-Reimbursement-and-Transit-Benefits)

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