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 $250 effective 01/2014 of personal parking expenses per month can be paid for on a pre-tax basis through this program.
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. 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 $250 effective 01/2014 per month.
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.
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.
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.