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.
"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.
"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.
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.
Relating to the creation of and the powers of a comprehensive multimodal urban transportation authority, including the power to impose taxes, issue bonds, and exercise limited eminent domain authority.