New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S2463

Introduced
2/5/24  

Caption

Exempts certain non-profit entities from requirement that certain employers offer employees certain pre-tax transportation fringe benefits.

Impact

If enacted, S2463 will directly affect non-profit organizations in New Jersey that employ at least 20 people, allowing them to avoid mandatory participation in the pre-tax transportation fringe benefit program. The bill alters the existing requirement under P.L. 2019, c. 38, improving the economic landscape for non-profits by reducing costs linked to employee benefits. This change is anticipated to allow these organizations to allocate their resources more effectively toward their mission-driven activities.

Summary

Senate Bill S2463 was introduced in New Jersey to amend the existing law concerning pre-tax transportation fringe benefits, specifically exempting certain non-profit entities from the requirement to offer these benefits to employees. This aims to alleviate financial burdens imposed on non-profit organizations, which are currently taxed at a federal rate on contributions to these transportation benefits. By excluding tax-exempt non-profit organizations from this obligation, the bill seeks to provide them with financial relief and operational flexibility.

Contention

While proponents of the bill argue that it provides essential support to non-profit organizations, criticism may arise regarding the implications of such exemptions on employee benefits. Some may contend that while alleviating financial burdens for non-profits, the bill could lead to disparities in employee benefits between non-profits and for-profit entities. Additionally, there may be concerns regarding the long-term impact of these exemptions on the labor market and employee welfare within the non-profit sector.

Companion Bills

NJ S1776

Carry Over Exempts certain non-profit entities from requirement that certain employers offer employees certain pre-tax transportation fringe benefits.

Previously Filed As

NJ S1776

Exempts certain non-profit entities from requirement that certain employers offer employees certain pre-tax transportation fringe benefits.

NJ S677

Permits employers to prohibit use of cannabis by certain employees.

NJ S2518

Permits employers to prohibit use of cannabis by certain employees.

NJ S3718

Modifies employee health benefits requirements under certain economic development programs.

NJ A5286

Modifies employee health benefits requirements under certain economic development programs.

NJ S1733

"Government Reality Check Act"; prohibits public employers from providing certain benefits to public employees; restricts gifts to public employees; restricts travel by public employees; imposes post-employment restriction on public contracting employees.

NJ A3515

"Government Reality Check Act"; prohibits public employers from providing certain benefits to public employees; restricts gifts to public employees; restricts travel by public employees; imposes post-employment restriction on public contracting employees.

NJ A3870

Permits employer to prohibit use of cannabis by certain employees.

NJ SB1454

Income tax; exempting employers with fewer than fifty employees from income tax. Effective date.

NJ S0382

Establishes the commuter transportation benefit chapter. Employers with five hundred (500) or more employees would be required to establish a pre-tax commuter transportation fringe benefit program.

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