Frequently Asked Questions
This is intended to provide hightlights of the California
State University (CSU) Pre-Tax Parking Deduction Plan. pre-tax
parking plans are governed by rules set by the Internal Revenue
Service (IRS) and supersede this information in the event
of any discrepancy. If you have any questions about the Plan,
please contact Katy Rollo, Ext. 6426.
Overview
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 your 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.)
Eligible Employees
You are eligible to participate in the CSU Pre-Tax Parking
Deduction Plan if you are in an Executive, Management Personnel
Plan (MPP), Confidential or other non-represented position,
or are covered by a collective bargaining agreement that provides
the benefit. You must be in a position that can participate
in the Plan through payroll deduction.
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. Your 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 enrolled,
you must complete and submit a CSU Pre-Tax Parking Deduction
Election Authorization form to Katy Rollo in Financial Accounting
and Reporting, to disenroll and pay for parking through after-tax
payroll deduction. (Please contact Katy Rollo, Ext. 6426,
for more information.)
Change in Election
You may change your election to participate in the Plan at
anytime. All changes must be prospective. If you decide to
discontinue or resume participation, you must complete and
submit a CSU Pre-Tax Parking Deduction Election Authorization
form to the CSU Chico Financial Accounting and Reporting 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.
Eligible Expenses
The IRS limits qualified parking expenses to parking at or
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.
Amount You Can Contribute
For 2002, IRS Code Section 132(f) limits the amount of qualified
parking that may be excluded from your taxable income to $195
per month for a pre-tax parking deduction. This limit may
be adjusted annually to reflect cost of living increases.
Any amount of parking deduction in excess of $195 will be
paid with after-tax dollars.
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