NEW YORK, April 8, 2019 /PRNewswire/ — Clarity Benefit Solutions discusses the recent legislation signed by Governor Phil Murphy that provides a tax benefit for New Jersey commuters.
On March 1, 2019, Governor Murphy signed into effect S1567, a bill that requires employers with at least 20 employees (with the exception of those currently in a collective bargaining agreement) to offer a pre-tax commuter benefit program.
Commuter benefit programs let employees set aside a certain amount of pre-tax dollars to be used towards commuting expenses like transit passes, parking rates, and park and ride services. Since employees are not taxed on these funds, they can accumulate significant savings over time.
Employers also benefit from these types of programs. The more employees that enroll in the program, the more employers can save on payroll tax expenses.
An example of an existing commuter benefits program is Clarity Smart Ride. This program can help employees save up to 30% on their commuting expenses and help employers save up to 7.65% on payroll taxes for every dollar contributed to the plan.
Although some forward-thinking companies have already began offering a commuter benefits program, the mandatory adoption will help spread the positive impact of these programs further across the state.
“By signing this bill, my Administration is taking another step toward creating the fairer and more customer-friendly transportation system that our commuters deserve,” said Governor Murphy.
Since transportation costs are a significant burden on New Jersey commuters, signing this law into effect will put money back in the pockets of those who earned it. The New Jersey department of labor will start adopting rules and regulations to enforce this law.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
SOURCE Clarity Benefit Solutions