NJ TRANSIT's BusinessPass
BusinessPass makes it simple for your employees to receive monthly bus and rail passes at your work site. The program helps employees realize a cost savings by using a cost-effective monthly pass, a pre-tax deduction and/or a company provided subsidy.
Getting Started
A comprehensive table detailing Current Commuter Tax Benefits
is available on on our
Federal Commuter Tax Table Page.
Federal Commuter Tax Table Page.
| The minimum order to participate in BusinessPass is five passes per month. |
Methods of Employee Payment
| To ensure success, NJ TRANSIT recommends that payroll deductions be used as the employee's method of payment. If deductions begin before the first order is placed, employees will have paid for their passes prior to distribution. |
| As of Jun 9, 1998, Federal legislation permits up to $65.00 per month, $780.00 per year, to be deducted from an employee's salary on a pre-tax basis towards mass transportation costs. With this pre-tax option, both employees and employers save money. Employees save on their purchases and reduce their taxable wages. Employers save on payroll costs. |
| The above mentioned Federal legislation also allows an employer to award each employee up to $65.00 per month, $780.00 per year toward the purchase of transit fares. This incentive is tax-free to the employee and tax-deductible to the employer. |
| The IRS allows you to mix and match the subsidy and pre-tax options. the cap for combining the two is also $65.00 per month, $780.00 per year. For instance, if you offered a subsidy of $20.00 per month, your employee may request the remaining $45.00 per month to be taken from their pre-tax income and any additional pass costs from their net income. |
For more information on BusinessPass, please contact Sandra
Brillhart at (609) 452-1491.
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TMA |