N.J. Admin. Code § 6A:23A-4.2

Current through Register Vol. 57, No. 1, January 6, 2025

Section 6A:23A-4.2 - Compliance with requirements for income tax

(a) The SBA or any other person designated by the district board of education shall certify to the New Jersey Department of the Treasury on a form provided by the Department of the Treasury that all documentation prepared for income tax related purposes, in regard to superintendents, assistant superintendents, and SBAs, complies fully with Federal and State laws and regulations regarding the types of compensation that are required to be reported.

(b) The personal use of a school district vehicle and/or use of driver services shall be taxable to the employee as a non-cash fringe benefit pursuant to the IRS Code. "Personal use" includes commuting to and from work, as well as personal travel. Pursuant to N.J.A.C. 6A:23A-3.1 and 6.12, a school district shall not assign a vehicle permanently to an individual for the primary purpose of commuting nor shall a school district provide a dedicated driver or chauffeur. Incidental personal use, however, shall be permitted and shall be taxable pursuant to the IRS Code.

1. The SBA or designee shall be responsible for notifying the affected employees, within 30 days of providing them with the use of a school district vehicle, of the valuation method to be used to calculate their vehicle fringe benefit.

2. The value of the services provided by a driver to the individual assigned a school district vehicle shall also be included in determining the total taxable fringe benefit.

3. The total taxable non-cash fringe benefit amount shall be the proportional share of personal use and commutation value to total value of the school district vehicle and driver salary.

4. The taxable non-cash fringe benefit amount shall be included in the gross wages of the final pay period of the calendar year, and displayed in the box entitled "Taxable Benefits" on the W-2 Forms of the affected employees.

5. The taxable non-cash fringe benefit amount shall be included in taxable Federal wages and taxable State wages for New Jersey residents.

6. FICA and Medicare contributions, if required, shall be withheld for affected employees on the final pay period of the calendar year.

(c) Other fringe benefits and perquisites shall be taxable to the employee in accordance with State or Federal law.

N.J. Admin. Code § 6A:23A-4.2

Amended by 49 N.J.R. 1038(a), effective 5/1/2017