New Jersey’s Commuter Benefit Law Takes Effect on March 1

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.

Maryann Schugmann Maryann Schugmann, CPA, is a Partner at Grassi’s New Jersey office and brings over 30 years of accounting experience to the firm. Maryann specializes in providing tax solutions to clients and directs both the Trust and Estate Division at the New Jersey office. Maryann is also the Partner-in-Charge of the individual (1040) tax department at the New Jersey office and manages the resources to... Read full bio

Categories: State & Local Tax, Tax