[HREO Home] [Benefits]
DATE: February 10, 2004
TO: All Unit 3 Employees
FROM: Deborah Coronado
Associate Director, Human Resources & Equal Opportunity
SUBJECT: CSU Pre-Tax Parking Deduction Plan Implementation for Eligible
CFA Employees (Unit 3)
The California State University (CSU) is pleased to provide eligible faculty unit employees with a CSU pre- tax parking deduction benefit plan. Eligible faculty who currently pay for parking through payroll deduction with after-tax earnings may now participate in the CSU Pre-Tax Parking Deduction Plan.
Effective April 1, 2004, if you are in an eligible position and currently pay for parking expenses through payroll deduction, you will be automatically enrolled as a participant in the CSU Pre-Tax Parking Deduction Plan. As a participant, the amount you pay for parking expenses through payroll deduction will be tax exempt, which means parking deductions will be taken from your pay before federal, state, Social Security, and Medicare taxes are calculated. Your taxable income will be reduced, and consequently your taxable income reflected on your annual W-2 statement will be reduced. Your first pre-tax deduction under the plan will be reflected in your April 1 pay warrant (March pay period).
Eligibility
Faculty unit employees are now eligible to participate in the pre-tax plan. In order to participate, you must be able to pay for CSU parking expenses through payroll deduction.
If you are not currently parking in a CSUSM parking facility established by this campus and are interested in doing so, please contact Parking Services at 750-7500.
Enrollment
If you are currently paying for parking expenses through payroll deduction, enrollment in the pre-tax plan is automatic unless you choose to continue paying for parking expenses with after-tax dollars. If you wish to continue parking deductions with after-tax dollars, you must complete a CSU Pre-Tax Deduction Election Authorization form to opt out of the pre-tax plan. You may change your election to participate at any time. The authorization form is available in Parking Services and must be submitted to your campus Benefits Office by February 27, 2004.
Eligible Expenses
If you are currently paying for CSU parking through payroll deduction, your parking expenses will automatically qualify as a pre-tax expense. The IRS monthly deduction limit for calendar year 2004 is $195. If you pay more than the IRS limit, the difference will be paid to you in after-tax dollars.
For additional plan details, please refer to the CSU Pre-Tax Parking Deduction Plan brochure.
Human Resources and Equal OpportunityCal State San Marcos 333 S. Twin Oaks Valley Road
San Marcos, CA 92096-0001