New transportation benefit compliance requirement for all NJ Employers with more than 19 employees
You may be aware of the newly approved legislation by NJ Governor Phil Murphy that requires employers with 20 or more employees to offer pretax transportation fringe benefits to its employees. This is the first state-wide requirement of its kind in the US.
The law will take effect immediately and all affected employers must implement the benefits by March 1, 2020, or the effective date of the NJ Department of Labor and Workforce regulations, whichever comes first. There will be penalties assessed for non-compliance.
Why you care:
- Non-compliant employers will be liable for a civil penalty ranging between $100-250 on the first violation.
- After the first violation, employers will have 90 days to comply. For each additional 30-days of non-compliance, it is a subsequent violation with $250 penalty each.
- Any penalties incurred may be recovered with costs and interest charges (if applicable) in a summary proceeding.
What you need to do:
Ensure you are offering a pretax transportation fringe benefit for both commuter highway vehicle benefits and transit benefits that comply with the Internal Revenue Code (IRC) § 132(f)).
We can help!
Benefit Quest offers transportation benefits that are fully compliant with IRC § 132(f)) with our partners. With our pretax Parking Account or pretax Transit Account (or both!), employees can pay for expenses such as parking fees or transit ticket costs. And your company will be in compliance with the new legislation.
Contact us today to get started and ensure that you are meeting requirements!
Eric Cohen
eric.cohen@benefitquest.com
212-389-7838