N.J. Admin. Code § 12:16-4.3

Current through Register Vol. 56, No. 21, November 4, 2024

Section 12:16-4.3 - Fringe benefit payments

(a) Fringe benefit payments which result in a direct benefit to the employee are generally taxable. Fringe benefit payments which take the form of a reimbursement or a health benefit are usually non-taxable.

(b) Taxable fringe benefits may include:

1. Vacation pay (both before and after dismissal);

2. Separation/severance pay (if made under a contractual obligation or by custom);

3. Guaranteed annual wage payments;

4. Difference between regular salary and jury duty pay;

5. Employer payments to employees' IRA;

6. Draw against future earnings (taxable when paid) unless the employer takes legal steps to recoup the over-payments;

7. Payment of employee's portion of Federal or State income tax unemployment/disability insurance taxes, or social security tax.

8. Wages paid after death to either the estate or beneficiaries within the same calendar year as the death;

9. Moving expense payments to the employee to the extent the payments exceed actual employee expenses; and

10. Expense allowances for which no accounting is made to the employer.

(c) Non-taxable fringe benefits may include:

1. Employer payments to retirement plans including, SEP-IRA plans (See (d) below);

2. Payments to hospitalization and medical/dental plans, and payments made under such plans;

3. Payments to union welfare funds;

4. Life insurance premiums;

5. Tuition reimbursements and payments.

(d) In general, the entire gross remuneration for services rendered by an employee is taxable up to the maximum yearly wage base. This includes all types of deferred compensation, including amounts deducted for payment into a deferred savings program that lets the employee set aside money for his or her retirement.

N.J. Admin. Code § 12:16-4.3

Amended by R.1990 d.217, effective 4/16/1990.
See: 22 New Jersey Register 603(b), 22 New Jersey Register 1269(a).
In (b): added 8-10.
Amended by R.1995 d.138, effective 3/6/1995.
See: 27 New Jersey Register 61(a), 27 New Jersey Register 919(a).
Amended by R.2000 d.68, effective 2/22/2000.
See: 31 New Jersey Register 4218(a), 32 New Jersey Register 709(a).
In (d), inserted ". This includes all types of deferred compensation," following "base".