Pre-Tax Parking Deduction
Employees may elect to have their parking
permit payroll deductions made on a pre-tax basis. In order to make an informed
choice, the information below may be helpful.
The
positive
consequences to electing pre-tax parking is that it will REDUCE your
 |
Federal
Income Tax Withholding Deduction |
|
Social
Security Tax (OASI) Withholding Deduction |
|
Taxable Income |
Which will result in an INCREASE in your net pay
The
negative
consequences to electing pre-tax parking is that it will REDUCE your
|
Social
Security Contributions and Employer Matching Contributions |
This election is deemed to be made on a month by month basis. It cannot be retroactively elected, nor can it be retroactively cancelled. No refunds for past pre-tax parking may be made. Please check your earnings statement carefully each month.
If you wish to cancel your pre-tax election, it must be done by the 15th of the month preceding the month in which the election would have been made. For example, if you decide that you do not want your parking deduction to reduce your taxes and retirement contribution for the month of May, you must notify the Police department prior to April 15.