Ridewise

  • About
    • Who We Are
      • Staff
      • Board of directors
    • Our Mission
    • News
    • Annual Report
    • Contact Us
    • FAQ
  • Community
    • Street Smart
    • Walkability and Bikeability Audits
    • Complete Streets
    • Sustainable Jersey Certification
      • Webinars on Sustainable Jersey Actions
    • Parklets
    • Speed Sentry & Speed Studies
  • Biking & Hiking
    • Bicycling and Hiking in Somerset County
    • Biking & Walking Toolkits
    • Parks and Recreation
    • NJ TRANSIT Bicycle Regulations and Lockers
    • NJ Bicycling Regulations
  • Bus & Rail
    • Bus
      • Somerset County Bus Services
      • NJ Transit Bus Services
      • Regional Bus Services
    • Rail
      • NJ Transit Rail Services
    • Somerset County Transportation Guide
    • Municipal Transportation
    • TransitConnect
    • Places Transit Can Take You
  • Employers
    • Services for Employers
    • Workplace Wellness & Sustainability Toolkit
    • Somerset County Business Resources
    • Commuter tax benefits
    • BusinessPass
  • Commuters
    • Ridesharing
      • Carpooling
        • Register A Carpool
      • Vanpooling
        • Vanpools to Somerset County
    • Cost Calculator
    • Park and Ride lots
  • Schools
    • Safe Routes to School
      • Safe Routes to School Winners
    • Anti-Idling Lesson Plans & Activities
    • School Travel Plans & Tallies
  • Electric Vehicles
    • Electric Vehicle Coalition: Let’s Go Electric
      • Past Let’s Go Electric Meetings
    • EV Charging Stations in Somerset County
    • Electric Vehicle Resources
      • Resources for Electric Vehicle Owners and Buyers
      • Electric Vehicle Resources for Municipalities
      • Electric Vehicles Glossary
  • BikeConnect
  • 2022 Recognition

Commuter tax benefits

Save up to $900 on your taxes when you commute.

New Jersey employers with 20+ employees are required to offer pre-tax transportation fringe benefits to their employees. The law (Senate Bill No. 1567) took affect on March 1, 2020.

What does this law mean?

Under this law, employers must allow employees to set aside a portion of their pre-tax wages to be used to cover costs associated with using mass transit, parking or vanpooling. Click here to see the maximum tax-free amount employees can set aside.

How much pre-tax salary can be used?

Click here to see the most recent numbers on how much employees may use towards their mass transit commute without paying federal income tax.  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 passes or universally accepted vouchers and debit cards.

The employee deductions reduces the amount of payroll being taxed. This means a savings of up to 7.65% on average, on payroll taxes for the employer. The more employees that enroll, the greater the savings.

Are vanpools eligible for this benefit?

Yes, the pre-tax transit benefit includes third-party vanpools, which can use the same amount. Third-party vanpools involve a contracted leased vehicle and an organized vanpool. Employees sharing a ride in a personal vehicle (carpooling) are not an eligible vanpool.

What do employers need to do?

Employers need to either register for the benefit program with NJ TRANSIT (for bus/rail passes) or through their payroll provider.  Most payroll service companies offer a transit pre-tax benefit option. A common name for the benefit is “commuter tax benefit”.

What if there’s no mass transit by my worksite/workplace?

There may be more transit in the area than you think.  Contact RideWise for assistance in finding bus/rail services in and around Somerset County.

Recent Posts

  • NJ TRANSIT 114/117 Modifications December 15
  • Thanksgiving Transit Modifications
  • Somerville National Drive Electric Week EV Car Show Highlights the Benefits of Driving Electric at Somerville’s Street Fair
  • RideWise and Somerset County celebrate Walk to School Month
  • New NJ TRANSIT Rail Schedules Effective Immediately

Get The News

Sign up for our e-mail newsletter and stay up to date on sustainable transportation news and events from RideWise.
Email *
* Required Field
Email Marketing Services by Benchmark

© Copyright 2023 Ridewise Inc. · Privacy Policy · Disclaimer · All Rights Reserved