New Jersey Senate Bill S1776

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

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

Impact

If enacted, S1776 would significantly impact the employment landscape for non-profit organizations in New Jersey. By removing the mandatory requirement for these entities to offer pre-tax transportation fringe benefits, it would enable them to allocate resources more effectively, reducing operational costs. This change could enhance their financial stability and capacity to provide services, especially in the face of federal taxation. However, it raises questions about the potential implications for employees' access to such benefits, which can aid in commuting and overall job satisfaction.

Summary

Senate Bill S1776, introduced in the New Jersey 220th Legislature, proposes to amend existing laws regarding pre-tax transportation fringe benefits for employers. Specifically, the bill seeks to exempt certain non-profit entities from the requirement that all employers with at least 20 employees provide these benefits. This exemption targets tax-exempt organizations under Section 501(c)(3) of the Internal Revenue Code, who currently face burdensome tax implications on contributions to these benefits at the federal corporate tax rate of 21%. By exempting non-profits, the bill aims to relieve financial pressures associated with compliance.

Contention

The discussion surrounding S1776 may involve concerns from different stakeholders regarding the adequacies of employee benefits in the non-profit sector. While proponents argue that the bill provides necessary relief for non-profits, critics might contend that exempting these organizations from offering such benefits can diminish workplace incentives and overall employee welfare. This bill sits within broader debates about employment law and taxation policies that affect the operational capabilities of non-profits in New Jersey.