Parking Services is pleased to announce that your payments for parking will soon be processed on a tax-preferred basis. Payroll deductions for University parking permits will be made with pre-tax earnings. The change is currently scheduled to become effective for the pay period beginning June 12th and will therefore be reflected in paychecks dated July 10, 2015.
University employees who currently pay for their parking via payroll deduction will be automatically enrolled in this Pre-Tax Plan; NO ACTION BY EMPLOYEES IS REQUIRED.
The net benefit to employees participating in the Pre-Tax Plan is expected to be a decidedly positive one. These pre-tax payments will reduce the federal income, state income, and FICA taxes withheld from paychecks. Employee savings will vary in relation to their permit choice and tax rate, but all participants will notice some reduction in the amount of tax withheld. Although the pre-tax payment of parking fees will slightly reduce income for Social Security purposes, State retirement plan calculations will be unaffected.
Following the change, employees will still be able to stop their parking deductions at any time by returning their permit(s) to Parking Services. However, per the IRS tax code, pre-tax parking deductions cannot be cancelled or refunded retroactively. Please be aware that permit cancellations may take one or two pay periods to become effective.
Employees who wish to opt out of the Pre-Tax Plan may do so by contacting Parking Services and making arrangements to pay their parking fees in full at the Parking Services office via cash, check or credit card. Finally, please note that employees who are not currently eligible for payroll parking deductions, such as students and special payroll employees, will be unaffected by this change.
For more information, contact: Parking Services at parkingservices@uconn.edu