By: Cristina N. Hyde, J.D.
Last March, Governor Murphy signed legislation requiring New Jersey employers, who have more than twenty employees, to offer pre-tax commuter benefits to those individuals who are not already subject to a collective bargaining agreement. Simply put, Senate Bill No. 1567 provides for a pre-tax fringe benefit permitting an employee to set aside wages on a pre-tax basis that are then made available for specific transportation services.
Although currently already in effect, S.1567 is not actually operative until either March 1, 2020, or the effective date of implementing rules and regulations adopted by the New Jersey Department of Labor and Workforce Development, whichever occurs first. Nevertheless, with less than one month until the March 1 deadline, employers who have not already done so should establish a pre-tax commuter benefit plan. A failure to do so, could expose your business to monetary penalties.
Campanella Law Office will be monitoring future guidance from the Commissioner of Labor and Workforce Development related to the implementation and enforcement of this legislation. Meanwhile, if you are unsure as to whether your business is affected by S.1567 or you would like assistance establishing a commuter benefits plan for your business, please contact us to discuss your options.