Pre-Tax
Parking Fee Deduction Program
Questions and Answers
What
is the Pre-Tax Parking Fee Deduction Program?
The Pre-Tax Parking Fee Deduction Program allows you the choice
to payroll deduct your parking fees on a pre-tax basis. When
you
elect to payroll deduct on a pre-tax basis, it reduces your taxable
income. This allows you to realize savings in Federal Income
Taxes,
Social Security, and Medicare. Due to recent changes in Federal
tax laws, up to $220, effective 1/2008, of personal parking
expenses per month can
be paid for on a pre-tax basis through this program.
Examples
of Potential Tax Savings
How
do I know if I am eligible?
You are eligible for the Pre-Tax Parking Fee Deduction Program
if you are a member 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.
Why
are non-WSU employees excluded from the Pre-Tax Parking Fee Deduction
Program?
The law does not exclude non-WSU employees from the Pre-Tax Parking
Fee Deduction. However, since WSU is not paying these affiliates
we have no ability to offer a parking deduction whether pre-tax
or not. This benefit would need to be provided by their
employer. Non-WSU employees should contact their employer for
more information.
How
do I enroll?
If you are eligible to participate, all you need to do is select
the Payroll Deduction option on the Web when you purchase your
permit or fill out a Parking
Permit Payroll Deduction Authorization Form when you purchase
your parking permit from our office. Make sure you check the appropriate
box in the “pre-tax election” section and indicate the
number of payroll deductions.
Do
I have to enroll in the Pre-Tax Parking Fee Deduction Program?
Is it mandatory for all employees?
No. Enrollment in the Pre-Tax Parking Fee Deduction Program is
voluntary.
Can
I still use payroll deduction for my parking permit without enrolling
in the Pre-Tax Parking Fee Deduction Program?
Yes. Simply check the “No” box under the “pre-tax
election” section of the Parking Permit Payroll Deduction
Authorization Form.
When
will the payments be deducted from my paycheck?
Following submission of the Parking Permit Payroll Deduction
Authorization Form payments will automatically be deducted from
your paycheck
on a pre-tax basis each pay period (the 10th & 25th of each
month). In most cases, the first payroll deduction will occur
on September 10th. Additionally, you can choose the number of
payroll deductions that suits you, as long as the pre-tax deduction
is not over $220, effective 1/2008, per month.
Can I get a refund on my permit if I purchased it using the Pre-Tax
Parking Fee Deduction Program?
No, but you can stop the payroll deduction at any time prior to
the month that you want the Pre-Tax Parking Fee Deduction to stop.
It is recommended that you payroll deduct through the end of the
plan year, or until your academic or cyclical appointment ends
each year.
Can I get a refund on my permit if I purchased it using the Post-Tax
Parking Fee Deduction Program?
Yes, however the permit needs to be returned before June 1st
of the year the permit expires. Refunds are processed by WSU
Student Accounts. Please inquire at Room 342, French Administration
Building or call 509-335-9651.
Will
the amount of the Pre-Tax Parking Fee Deduction impact the amount
I can contribute to my retirement plan or tax sheltered annuities?
No. Your retirement contributions will not be affected.
Will
the Pre-Tax Parking Fee Deduction affect my Social Security benefits?
Since this program has the general affect of lowering your taxable
income, Social Security benefits may be slightly reduced for certain
participants.
Will
the Pre-Tax Parking Fee Deduction reduce my retirement benefit?
No. The Pre-Tax Parking Fee Deduction will not impact your retirement
benefit.
Examples
of Potential Tax Savings
Download: Parking
Permit Payroll Deduction Authorizaton Form
Back
to the Pre-Tax Parking Fee Deduction Program Summary
Questions
and Comments: parking@wsu.edu
