New Jersey Governor Phil Murphy signed S1567 into law on Friday, requiring certain employers to offer a pre-tax transportation fringe benefit to their employees.
New Jersey employers of at least 20 employees will be required to offer this benefit to employees who are not currently in a collective bargaining agreement.
“Many residents of New Jersey use mass transit or other forms of transportation to commute daily to and from work,” Governor Murphy said.
“Providing this pre-tax benefit to commuters throughout our state will reduce the financial burden of fares and parking costs, resulting in significant savings. By signing this bill, my Administration is taking another step toward creating the fairer and more customer-friendly transportation system that our commuters deserve.”
A pre-tax benefit will allow an employee to set aside a certain portion of pre-taxed wages, which could be made available for specified transportation services while reducing the employee’s federal taxable income.
The New Jersey Department of Labor and Workforce will adopt rules and regulations concerning the administration and enforcement of the pre-tax benefit.
Primary sponsors of the bill include Senate Majority Leader Loretta Weinberg and Assemblymembers Daniel Benson, Thomas Giblin, and Anthony Bucco.