The State of New Jersey announced that effective March 1, 2020, all employers in New Jersey with 20 or more employees will be required to offer a pre-tax transportation fringe benefit to all of their employees that are not subject to a collective bargaining agreement. Federal government employees who are eligible for a transit benefit through their employment equal to or greater than a pre-tax transportation fringe benefit do not need to be offered this plan.
A pre-tax transportation fringe benefit, that is, benefits that are exempt from income for federal tax purposes, will allow employees to set aside pre-tax dollars for work-related parking and/or public transit expenses such as subways, buses, and commuter rail. The current federal allowable pre-tax contribution is $265 a month for commuter highway vehicle benefits (vanpooling), transit passes and qualified parking (i.e. “park-and-ride lots”).If you would like to implement a pre-tax transportation fringe benefit plan at your workplace, contact your P&A Group sales representative at (800) 688-2611, ext. 1 or contact us here.