What payroll taxes are exempt?
TransitChek benefits are excluded from most payroll taxes. They are exempt from federal, state, and city taxes along with Social Security and Medicare in New York and Connecticut. New Jersey does not exempt pretax transportation benefits from state taxes only. However, it is exempt from New Jersey state taxes only if you give it free to your employees as a fringe benefit. Consult your tax advisor for details.
TransitChek benefits are excluded from most payroll taxes. They are exempt from federal, state, and city taxes along with Social Security and Medicare in New York and Connecticut. New Jersey does not exempt pre-tax transportation benefits from state taxes only. However, it is exempt from New Jersey state taxes only if you give it free to your employees as a fringe benefit. Consult your tax advisor for details. [ http://www.transitcenter.com/Employers/Faqs.aspx#faq2_6 ] When creating the deduction item, you can select manually which tax items the deduction will be exempt from. I hope this helps…
