March 1, 2020 marks the end of the 365 days that New Jersey employers were given to comply with the state’s new requirement to offer pre-tax commuter benefits to employees.
In March 2019, New Jersey became the first state to mandate employee transportation fringe benefits, which allow employees to put aside tax-free dollars (subject to monthly limitations) to be used on qualified public transportation, parking and commuter bicycling expenses.
For-profit and non-profit employers with as few as 20 employees – and as little as $1,000 paid to employees in a calendar year – are all subject to this new requirement. Financial penalties will be imposed on employers who fail to comply.
Categories:
State & Local Tax, Tax
