NJ Passes Commuter Benefit Law

This new ordinance would require employers with more than 20 employees to offer commuter benefits.

On March 1, 2019, New Jersey Governor Phil Murphy signed into law a new commuter benefit ordinance. This new ordinance would require employers with more than 20 employees to offer commuter benefits.  We’ve created a quick synopsis below.  To read the full NJ Commuter Ordinance, please click here.

What is a commuter benefit?

  • A commuter benefit account is an employer-sponsored benefit program that allows an employee to set aside pre-tax funds to pay for qualified mass transit and parking expenses associated with their commute to work. Commuter benefits allow employees to deduct eligible work-related transit and parking expenses on a pre-tax basis saving up to 30%-40% on their commuting expenses. 

How does the NJ commuter law impact your clients?

  • Every employer in the state of New Jersey that employs at least 20 persons shall offer to all of their employee’s the opportunity to utilize a pre-tax transportation benefit. Any employer found to be in violation of the requirement shall be liable to a civil penalty. 

When does the new law take effect?

  • We are still waiting on final rules and regulations, however, this act is in effect immediately. Civil penalties will not take effect until sometime in 2020. 
  • OCA will continue to monitor this passage and will provide any additional guidance once it’s released.

 

OCA will be waiving its Commuter administrative fees thru January 2021. This waiver is for only existing New Jersey based HRA/FSA clients.  We value our relationships and intend to support our broker partners and clients in making this requirement as easy as possible. In addition, we are providing discounted rates for non-existing clients thru the end of 2019. To learn more about our offers, please contact me directly