Pre-Tax
Parking Fee Deduction Program
Summary:
Qualified Transportation Fringe Benefit
(Pre-Tax Parking Fee Deduction Program)
Impact:
The Pre-Tax Parking Fee Deduction Program allows employees to
payroll deduct their permit cost on a "before tax" basis,
saving federal withholding tax, social security and Medicare expense.
For
example, at a marginal federal tax rate of 15%, an employee could
save $15.00 of federal withholding tax, and $7.65 of social security
and Medicare tax for every $100 in parking fees that they have
payroll deducted.
Examples
of Potential Tax Savings
Pre-Tax
Q & A: Answers To Your Questions
Eligibility:
Anyone who is eligible to payroll deduct his or her permit fees
may participate in the Pre-Tax Parking Fee Deduction Program.
Those
eligible for payroll deduction are members of the WSU Faculty,
Classified Staff, Administrative & Professional Staff, and
Graduate Students on an appointment of 0.50 FTE or greater. Temporary
employees are not eligible.
Important
Note About Refunds:
Federal law prohibits refunds of pre-tax qualified parking deductions.
This is clearly stated on Parking Permit Payroll Deduction Authorization
Form signed by the participant. According to the federal law and
regulation, an employee who ceases to participate in the Pre-Tax
Parking Fee Deduction Program (such as in the case of termination
of employment) would not be entitled to receive a refund.
Tax laws do not allow for a refund of the Pre-Tax Parking Fee
once deducted. Therefore, it is recommended that you payroll deduct
through the end of the plan year (September through August) or
until your academic or cyclic appointment ends each year.
If
you wish to stop parking permit fee deductions, return the permit
to the Parking office for cancellation of the authorization and
the deduction will be stopped on the next available pay cycle.
Pre-Tax
Q & A: Answers To Your Questions
Download: Parking
Permit Payroll Deduction Authorizaton Form
