As a result of recent changes to federal tax law, effective for the pay period beginning August 14, 2020 (first reflected in paychecks dated September 11, 2020), payroll deductions for University parking permits will be made on a pre-tax basis, in conformity with Section 132(f) of the Internal Revenue Code and the corresponding IRS regulations. Pre-tax deductions serve to reduce the amount of federal income tax, state income tax, and FICA tax withheld from each paycheck. While pre-tax deductions will reduce an employee’s taxable income for the purposes of income tax and FICA, they will not affect an employee’s income for the purpose of the state retirement plans.
No action is required for employees who have authorized paying for their parking permit through payroll deduction, as these employees will be automatically enrolled in the University’s Pre-Tax Parking Plan.
Employees who choose not to participate in the University’s Pre-Tax Parking Plan must elect to opt out of the Plan by completing and submitting an on-line Parking Deduction Tax Designation Election Form on or before August 13, 2020. Opt-out elections received on or before August 13, 2020 will be effective for the pay period beginning August 14, 2020.
Employees electing to opt out of the Pre-Tax Parking Plan may access the Parking Deduction Tax Designation Election Form at the following link:
For more information, contact: the Payroll Department at payroll@uconn.edu