Pre-Tax Parking Deduction Plan
The CSU Pre-Tax Parking Deduction plan allows you to pay for CSU parking expenses with pre-tax dollars. This pre-tax benefit is available only through payroll deduction for qualified parking as defined by the IRS and established by our campus (e.g., CSU owned, leased or contracted parking facility). If you are eligible, participation in the plan is automatic unless you choose otherwise. Deductions are taken from your pay before federal, state, Social Security, and Medicare taxes are calculated. Your taxable income is reduced, and consequently, your taxable income reflected on your annual W-2 statement is reduced.
The CSU Pre-Tax Parking Deduction Plan will have no impact on your CalPERS retirement or on any other CSU paid benefit. However, depending on your salary, your Social Security benefits at retirement may be reduced slightly, because you will have paid Social Security taxes on a lower wage. (For more information, you may wish to consult your tax advisor or financial planner.)
You must be in a position that can participate in the Pre-Tax Parking Deduction plan through payroll deduction program. The following non-represented positions and collective bargaining units are eligible to participate in the CSU Pre-Tax Parking Deduction plan:
- Executive (M98)
- MPP (M80)
- Confidential (C99)
- Physicians (Unit 1)
- CSEA (Units 2, 5, 7, and 9)
- Faculty (Unit 3) Effective April 1, 2004
- Academic Support (Unit 4)
- Skilled Crafts (Unit 6)
- Public Safety (Unit 8)
- Operating Engineers (Unit 10)
- Excluded Classes (E99)
Enrollment and Effective Date of Participation
New employees are automatically enrolled in the CSU Pre-Tax Parking Deduction Plan. Participation will be effective the first day of the month following your appointment. Participation will continue from pay period to pay period until you terminate participation or separate from CSU employment. If you choose not to participate when hired or at any time after your enrollment, you must complete and submit a CSU Pre-Tax Parking Deduction Election Authorization form to the Human Resources Office, WA 615, to disenroll and pay for parking through after-tax payroll deduction.
Change in Election
You may change your election to participate in the plan at any time. If you decide to discontinue or resume participation, you must complete and submit a CSU Pre-Tax Parking Deduction Election Authorization form to the Human Resources Office. The change will become effective on the first of the month following your change in election subject to campus and State Controller's Office (SCO) processing timelines. Please contact the Human Resources office regarding effective dates.
The IRS limits qualified parking expenses to parking at our near your work location or at a location from which you commute to work by carpool. The CSU Plan allows a pre-tax benefit only for qualified parking paid for by you through payroll deduction. Not all parking expenses allowed under the IRS rules may be eligible through payroll deduction as prescribed by campus policy and the SCO.
Please refer to the CSU Pre-Tax Parking Deduction Plan brochure for additional information.