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Weinberg Bill to Require Pre-Tax Transportation Fringe Benefits Advances

Senator Weinberg

TRENTON Legislation sponsored by Senate Majority Leader Loretta Weinberg which would require certain employers to provide pre-tax transportation benefits advanced from the Senate today.

“Commuting costs, for the most part, are a predictable expense. If you asked someone how much they spend on their commute each month, most people could give a quick estimate off the top of their head,” said Senator Weinberg (D-Bergen). “This bill will allow workers across the state to set aside money to go towards their transportation expenses, like park and ride parking or transit passes, pre-tax. This would offer valuable savings to many New Jerseyans struggling to make ends meet.”

The bill, S-1567, would require every employer in the state with twenty employees or more, who are not part of a collective bargaining agreement, to offer a pre-tax transportation fringe benefit.

The pre-tax fringe benefit would allow an employee to set aside wages, which could be used to purchase certain transportation services. The wages set aside would be pre-tax and would not be subject to payroll tax for the employee or the employer, which would allow both the employee and the employer to reduce their federal tax payments.

Under the bill, the Commissioner of the Department of Labor and Workforce Development would ensure that required employers provide the benefit and issue citations to those who do not comply.

The bill cleared the Senate by a vote of 23-14.