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New Jersey employers with 20 or more employees are now required to offer pre-tax transportation (or fringe) benefit accounts to all their employees.
The law will take effect on March 1, 2020, or once the regulations are adopted, whichever comes first. If you don't have a plan in place by March 1st, you are potentially subject to fines.
The benefit must be offered to all employees. Employees covered by a collective bargaining agreement are excluded.
Civil penalties are issued by the commissioner of the NJ Department of labor and Workforce Development (NJDOL). First violations range from $100 to $250. Upon violation, the employer has 90 days before the penalty is imposed. After the 90-day period, every 30 days a subsequent violation will result in another $250 civil penalty.
Consider that for 2020, the monthly contribution limit for each Transit and Parking accounts is $270, for a combined total of $540 per month (if enrolling in both benefits).
Qualified fringe benefits include:
-Transportation in a commuter vehicle for travel between the employee's residence and place of employment (vanpool, rideshare such as Lyft Shared and UberPool)
-Transit passes for mass transit (train, bus, subway, trolley, water taxi, rail, ferry)
-Qualified parking at or near work (meter, garages, parking lots)
-Qualified bicycle commuting reimbursement
North Coast Administrators can help you implement this benefit to avoid penalties! Call us today at 800-677-6690 for more information on how we can help your company.
