Oregon University System

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OUS

 

Pre-tax Parking

Section: Fringe Benefits
Number: 66.400
Title: Pre-tax Parking

 

Index

POLICY

APPENDIX

  • None

POLICY


.100  POLICY STATEMENT 

Current federal tax laws make it possible for OUS to establish a Pre-Tax Parking Plan (Plan). This Plan enables eligible employees who pay for faculty/staff parking by payroll deduction to do so on a pre-tax basis. Qualified parking expenses are defined by the Internal Revenue Code. Pre-tax deductions reduce the amount of taxable income, which reduces the amount of federal and state income taxes and FICA withholding, thus increasing the employee's net take home pay. Tax savings will vary, depending primarily on the cost of the parking and the employee's effective tax rate.

This policy supercedes FASOM Section 10.92: Compensation -- Fringe Benefits -- Pre-tax Parking. No substantive changes were made to the content of this policy.

.110  POLICY RATIONALE

OUS seeks to provide a pre-tax parking plan to eligible employees. OUS seeks to ensure that the policies and procedures related to pre-tax parking are documented, communicated, clearly understood, and consistently applied.

.120  AUTHORITY

.130  APPROVAL AND EFFECTIVE DATE OF POLICY

Approved by the Board of Higher Education on June 16, 2000. The effective date of the policy is August 1, 2000. Reformatted in the Fiscal Policy Manual (FPM) format and approved by the Associate Vice Chancellor for Finance and Administration/Controller on July 7, 2010. No substantive changes were made to the content of this policy.

.140  KNOWLEDGE OF THIS POLICY

All Chancellor's Office and institutional personnel with payroll, human resources, transportation, and related responsibilities should be knowledgeable of this policy.

.150 DEFINITIONS

The terms used in this policy shall have the meanings set forth below unless the context in which they are used clearly indicates that some other meaning is intended.

Compensation means wages or salary paid to an employee by OUS.

Effective Date means within 60 days following approval of the Plan by the Board of Higher Education.

Election refers to the voluntary choice an eligible employee makes as to whether or not to participate in the Plan.

Eligible Employee means all permanent employees. Student employees and temporary employees are not considered "eligible employees."

Employer means the Oregon University System.

Opt-out means that an eligible employee voluntarily elects not to participate in the Plan. The employee opts out by signing a waiver form. By opting out, the cost of parking will be deducted from his or her pay after applicable federal and/or state taxes have been withheld.

Plan Year means the fiscal year, July 1 through June 30.

.160 RESPONSIBILITIES

The Vice Chancellor for Finance and Administration, or designee, shall have oversight responsibility for System provisions of the Plan. Each university Vice President for Finance and Administration, or designee, shall have oversight responsibility on their campus for institutional provisions of the Plan.

.170 POLICY PROVISIONS

Policy provisions consist of the following:

Eligibility: All regular employees are eligible to participate in the Plan. Temporary employees and student employees are ineligible.

Automatic Enrollment: Participation in the Plan is optional; however, all parking deductions will be made by default on a pre-tax basis unless a waiver form is signed by the employee indicating that he or she has chosen to opt-out of the Plan. If an employee chooses to opt-out, payroll parking deductions will be made on an after-tax basis. Once each plan year, an employee may change his or her election for future parking deductions. Institutional policies apply with regard to payment for faculty/staff parking permits by cash or check.

Reporting to Participants in the Plan: For each employee who participates in the Plan, OUS will account for and report on the employee's earnings statement the current pay period amount and calendar year-to-date amounts that have been deducted on a pre-tax basis from the employee's compensation.

Pre-Tax Benefit: As a pre-tax benefit, the cost of the employee's parking permit (up to the IRS established limit) will be deducted from gross pay before the calculation for federal and state income taxes and FICA taxes. Future tax treatment of this benefit is subject to on-going changes in federal and state tax governing provisions. Since participation in the Plan will reduce the amount of an employee's taxable compensation, there could be a slight decrease in the employee's future social security benefits, which are based on taxable compensation.

Termination of Participation: An employee may discontinue participation in the Plan at any time by giving written notification. Participation will cease on the first pay period following receipt of the notification by the university payroll office. If an employee stops participation in the Plan and retains the parking permit, payroll deductions will continue on an after-tax basis until the permit is relinquished or payment is made by cash or check. Institutional policies apply with regard to refunds. Participation in the Plan will also end upon termination of employment with OUS.

.690  CONTACT INFORMATION

Direct questions about this policy to the following offices:

Subject Contact
General questions from institutional personnel Campus Vice President for Finance and Administration (or designee)
General questions from institutional central administration and Chancellor's Office personnel

Chancellor's Office - Controller's Division

 

.695  HISTORY

06/16/2000 - Approved by Board of Higher Education for FASOM
07/07/2010 - Reformatted

Policy Last Updated: 07/07/10


APPENDIX


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