The State of New Jersey recently enacted legislation mandating that certain employers offer employees the opportunity to utilize a pre-tax transportation benefit.
The mandate applies to employers with at least 20 employees and is for commuter highway vehicle and transit benefits.
What happens if you do not provide the benefit?
Employers who fail to offer the benefit will be liable for a civil penalty ranging from $100 to $250. Employers have 90 days to offer a pre-tax transportation fringe benefit before the civil penalty is imposed. After 90 days, the employer will be subject to a $250 penalty for each additional 30 day period in which it fails to comply with the new legislation.
When does this rule tax effect?
The rule takes effect immediately but will not be enforced until final rules and regulations are released. It is anticipated that the earliest enforcement date will be March 1, 2020 so employers have until then to implement a pre-tax transportation fringe benefit program for employees. Please understand that this may be subject to change.
For more information about this new legislation, click
here
.
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