The New Jersey State Employees Commuter
Tax Savings Program (Commuter Tax$ave) is a benefit program authorized
by Chapter 162, P.L. 2001 and available under Section 132(f) of
the federal Internal Revenue Code.
This program allows eligible employees
to set aside before-tax dollars to pay for certain mass transit
and commuter parking expenses, thereby avoiding federal taxes
and saving money. An eligible employee is any employee of the
State; a State college or university; the State Library; or the
New Jersey Commerce and Economic Growth Commission, Palisades
Interstate Park Commission, New Jersey Building Authority, or
Waterfront Commission of New York Harbor who is eligible to participate
in the State Health Benefits Program, except those part-time
employees made eligible under Chapter 172, P.L. 2003.
Commuter Tax$ave Component Plans
Commuter Tax$ave consists of two
separate component plans. An eligible employee may elect to participate
in any combination - both, one, or neither of the plans.
The two components of Commuter Tax$ave
are for mass transit expenses and commuter parking expenses. Eligible
employees may execute salary reduction agreements to have up to:
- $230 per month ($2,760 per year) deducted from salary to pay for mass transit commutation costs
to and from work (mass transit includes train, bus, ferry, and
- and/or $230 per month ($2,760 per year) to pay for parking at work or at park and ride sites.
Pre-tax monies deducted from salary
are not subject to federal income taxes, Social Security taxes,
or Medicare taxes. There is a minimum deduction of $15 for either
mass transit or parking deductions. There are no provisions for
higher deductions on an after-tax basis.
Deductions may only be made for use
with the employee's personal commuting costs for going to and
from work. Deductions may not be made to pay for commuting costs
of dependents. In addition, Internal Revenue Service rules require
that mass transit benefits be delivered as tickets, payment cards,
or vouchers that can only be used to purchase mass transit tickets.
Parking benefits can be delivered as a payment card, voucher,
or as a reimbursement of expenses
Sheet #67, Commuter Tax$ave Program