Insights

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.

If you have any questions related to this change, please contact your Grassi advisor or Maryann Schugmann, Partner, at 201.808.9804 or mschugmann@grassicpas.com