Save up to $900 on Your Commute
New Jersey employers of at least 20 employees are required to offer a pre-tax transportation fringe benefit to employees who are not currently in a collective bargaining agreement.
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 $280 per month. That means you could save up to $900/year by not paying federal income tax on that salary.
Save Even More on Parking
If you need to pay for parking in order to make your transit connection, the parking fees can be funded with pre-tax dollars up to an additional $280 per month.
What Do You Need to Do?
Check with your employer to see if they already offer a commuter tax benefit. You may want to start with the Benefits Department, your Payroll contact or Human Resources Department. They will help you figure out if the benefit is already offered to employees. Keep in mind: the only way to access pre-tax salary is through your employer. Once you take home your paycheck, you have paid income tax on that salary. The pre-tax transit benefit is not a year-end deduction; it consists of payroll deductions throughout the year.
TaxFree commuter benefits can be structured as an employee-funded tax-free payroll deduction; as an employer-funded benefit; or the costs can be shared by employer and employee. The benefit can be delivered in the form of transit provider-specific passes or universally accepted vouchers and debit cards.
Let NJ TRANSIT help you through the process and provide the information you need to explore the options, programs and benefits of pre-tax transit. Contact the NJ TRANSIT Bulk Sales program at 973-491-7288, or contact any of our partner providers listed above.
For additional information, click here.
For more information about the benefit contact Anne Vivino at (973) 267-7600 ext. 101 or send her an email here.