Pre-Tax Parking Deduction Plan

CSU Pre-Tax Parking Deduction Election Authorization

The CSU Pre-Tax Parking Deduction Plan allows eligible employees 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 each campus (e.g., CSU owned, leased or contracted parking facility). For an eligible employee, participation in the Plan is automatic unless the employee chooses otherwise. Deductions are taken from an employee's paycheck before federal, state, Social Security, and Medicare taxes are calculated. An employee's taxable income is reduced, and consequently taxable income reflected on an employee's W-2 statement is reduced.

The IRS limits qualified parking expenses to parking at or near an employee's work location or at a location from which an employee commutes to work by carpool. The CSU Plan allows a pre-tax benefit only for qualified parking paid for by the employee through payroll deduction. Not all parking expenses allowed under IRS rules may be eligible through payroll deduction as prescribed by campus policy and the State Controller's Office.

IRS Code Section 132(f) limits the amount of qualified parking that may be excluded from an employee's taxable income. For further information regarding the IRS limit, see below: