A Transportation Management Account (TMA), also known as Section 132 of the Internal Revenue Code allows employees to contribute pre-tax dollars for commuting expenses. Within a TMA there are two "sub categories" Mass Transit and Parking.

Mass Transit is defined as qualified transportation expenses necessary for employees to travel to and from work; this would include mass transit and commuter highway vehicles. Funds can be used for:

Mass Transit

• Transit Pass, Tokens, Fare Card

• Voucher or similar items used for public transportation

Commuter Highway Vehicles must have at least 6 adults (not including the driver). At least 80% of the vehicle’s mileage must be for transporting employees between their homes and work place with employees occupying at least half of the vehicle’s seating (not including the driver).

Parking

Parking  funds can only be used for work related parking as long a the garage or parking lot is not owned by the employer.

Effective March 1, 2020, New Jersey employers with 20 or more employees are required to offer Pre-Tax Transit Benefits.