Pre-Tax Commuter Benefit Program
Governor Phil Murphy recently signed a bill into law requiring New Jersey employers of at least 20 employees to offer a pre-tax transportation fringe benefit to employees (who are not currently in a collective bargaining agreement) beginning March 1, 2020.
The Federal Government allows employees to set aside a certain portion of pre-tax wages, which can be used for your mass transit commuting costs and parking while reducing your federal taxable income. The Federal Government currently allows a pre-tax commuter benefit of $265 per month. That means you could save up to $900/year by not paying federal income tax on that salary.
Check with your employer to see if they already offer a commuter tax benefit.
Click HERE for additional details.
For more information and language assistance, please call NJ TRANSIT Customer Service at (973) 275-5555 between the hours of 8:30 a.m. and 5 p.m. daily.