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Faculty/Staff Payment Information
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How does payroll deduction work?
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To qualify for payroll deduction you must be in a budgeted position with at least
a 4.5 month appointment and at least 25% effort. Changes in employment status may
cause you to become ineligible for payroll deduction. If you become ineligible your
permit will be not be mailed until it is paid in full. Permits
not paid by September 1 will be offered to the next customer waiting.
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What is the Pre-Tax Payroll Deduction Plan?
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The TAMU Pre-Tax Parking Deduction Plan allows eligible employees to pay for TAMU
parking permits with pre-tax dollars beginning with parking permits for the period
of August 16, 2008 through August 14, 2009. This pre-tax benefit is available only
through payroll deduction for qualified parking, as defined by the IRS and established
by TAMU. Appropriate deductions will be made before federal, state, Social Security,
and Medicare taxes are calculated. As a result, your taxable income is reduced,
as well as your taxable income reflected on your annual W-2 statement. An employee’s
gross pay will not change, but the amount of pay subject to tax withholdings will
be reduced. The effect is that the participating employees will have an increase
in their net pay because less tax will be withheld from their pay. If you are enrolled
in payroll deduction for the payment of your parking permit, participation in the
plan is automatic unless you choose otherwise. Any employees enrolled in payroll
deduction for the payment of their parking permits who do NOT wish to participate
in the pre-tax benefit must complete and submit to Transportation Services the Texas A&M University Pre-Tax
Transportation Deductions Cancellation or Re-Enrollment form before July 15 EACH YEAR in order to
decline the pre-tax benefit.
The TAMU Pre-Tax Parking Deduction Plan will have no impact on your Teachers Retirement
System, Optional Retirement Plan, or any other paid benefits. 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.)
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Who is eligible for pre-tax parking deductions?
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Anyone who is eligible to payroll deduct his or her permit fees may participate
in the TAMU Pre-Tax Parking Deduction Plan.
Those eligible to participate in the
TAMU Pre-Tax Parking Deduction Plan are employed by TAMU in a position budgeted
for a minimum of 4.5 months AND at least 50% effort. Participation requires enrollment
in payroll deduction for the payment of your parking permit.
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Do I have to enroll in the TAMU Pre-Tax Parking Deduction
Plan? Is it mandatory for all employees?
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No. Enrollment in the TAMU Pre-Tax Parking Deduction Plan is voluntary.
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How is the TAMU Pre-Tax Parking Deduction Plan implemented?
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Employees enrolled in payroll deduction for the payment of their parking permits
are automatically enrolled in the TAMU Pre-Tax Parking Deduction Plan. Employees
who are not currently paying for these expenses through payroll deduction must authorize
a payroll deduction to receive the favorable tax treatment available under this
new program. Participation will be effective with the first paycheck containing a parking
deduction. Your participation will continue from pay period to pay period until
you to terminate the plan or separate from TAMU employment. If you choose to discontinue
your participation, you must bring your permit and photo ID to 108 Koldus to change
your payment option and complete the
Texas A&M University Pre-Tax Transportation Deductions Cancellation or Re-Enrollment
form. |
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Does using pre-tax parking deductions cause
any other changes in my payroll deductions?
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Federal regulations require pre-tax parking deductions to be paid in advance. Additionally, the Internal Revenue Service mandates that no portion of payments made on a pre-tax basis may be refunded to the customer. |
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Specifically, how will I see my deductions reflected on
my paycheck detail?
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Customers who select pre-tax payroll deduction during online permit registration
will see deductions reflected in the following ways:
- 12-month employees paid monthly: will see 12 equal deductions beginning in September
through August
- 12-month employees paid bi-weekly: will see 24 equal deductions from each of the
first two paychecks of each month beginning in August through July
- 9-11-month employees paid monthly: will see 9 equal deductions beginning in September
through May
- 9-11-month employees paid bi-weekly: will see 18 equal deductions from each of the
first two paychecks of each month beginning in August through April
- 4.5-8-month employees paid monthly: will see 4 equal deductions beginning in September
through December
- 4.5-8-month employees paid bi-weekly: will see 8 equal deductions from each of the
first two paychecks of each month beginning in August through November
Customers who select pre-tax payroll deduction after online permit registration
closes will see deductions reflected in the following ways:
- Employees paid monthly: will see a double deduction during the month after the date
the permit is purchased, then will see equal payments for the remaining portion
of the term of their employment
- Employees paid bi-weekly: will see a double deduction on each of the first two paychecks
during the month after the date the permit is purchased, then will see equal payments
for the remaining portion of the term of their employment
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Can I still use payroll deduction for my parking permit
without enrolling in the TAMU Pre-Tax Parking Deduction Plan?
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Yes. Simply complete and submit to
Transportation Services the Texas A&M University Pre-Tax Transportation Deductions
Cancellation or Re-Enrollment form.
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How do I make changes in my pre-tax parking deduction enrollment?
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If you elect to discontinue your participation in the TAMU Pre-Tax Parking Deduction
Plan, bring your photo ID and permit to room 108 Koldus and complete the Texas A&M University Pre-Tax Transportation Deductions Cancellation
or Re-Enrollment form for cancellation of the authorization and the deduction
will be stopped on the next available pay cycle. New employees will automatically
be enrolled in the TAMU Pre-Tax Parking Deduction Plan when the permit is issued
unless they complete a Texas A&M
University Pre-Tax Transportation Deductions Cancellation or Re-Enrollment form.
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What expenses are eligible for pre-tax parking deductions?
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The IRS limits qualified expenses to those incurred when you park at or near your
work location. Only expenses paid in advance by means of payroll deduction are eligible
for pre-tax treatment under the new program. Expenses incurred before the period
covered by a payroll deduction are not eligible for payment under the program. For
example, an employee may not pay for the cost of a parking pass for September with
payroll deductions made in the following October.
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How much can I contribute for pre-tax parking deductions?
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For 2007, IRS Code Section 132(f) limits the amount of qualified parking that may
be excluded from your taxable income for pre-tax parking deduction. The IRS may
adjust this limit annually for cost-of-living increases. Any amount of parking deduction
in excess of the allowed amount will be paid with after-tax dollars. Currently,
no TAMU parking permit exceeds this limit.
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Since the benefit is on a pre-tax basis, are tax-deferred
contributions affected?
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If an employee is contributing at or near the maximum amount to a supplemental retirement
income (IRC 401(k)), a tax sheltered annuity (IRC 403(b)), or a deferred compensation
plan (IRC 457), the employee may need to decline the pre-tax parking benefit or
adjust his or her tax-deferred contribution because participation in the pre-tax
parking benefit reduces the income available for sheltering under those plans. Social
security earnings upon retirement may also be marginally affected due to the reduced
social security contribution. Employees should consult their tax advisors with questions.
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How do I save with this benefit?
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Each month participating employees have dollars deducted from their paycheck, up
to a limit set by the IRS, on a pre-tax basis to pay for parking passes or other
qualified transportation expenses. Since these deductions are taken on a pre-tax
basis you are saving taxes because you are not paying income or social security
taxes on the wages used to purchase parking. The net effect is that you are buying
your pass at a discounted price. You may save up to 35% depending on your tax bracket,
which might mean up to 3 free months of free parking over the course of the year.
An employee's gross pay will not change, but his/her net pay will increase, due
to the lesser amount of pay subject to tax withholding. Examples:
- John Doe is a TAMU employee who parks in Lot 51, spending $20.00 per month for his
parking permit. John is in the 15 percent tax bracket:
Savings on TAMU permit: $20.00 x 12 months x 15 percent = $36.00 per year
- Mary Smith is a TAMU employee who parks in a numbered space in Lot 66, spending
$35.00 per month for her parking permit. Mary is in the 28 percent tax bracket:
Savings on TAMU permit: $35.00 x 12 months x 28 percent = $117.60 per year
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Can I get a refund on my permit if I purchased it using
the TAMU Pre-Tax Parking Deduction Plan
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No. Federal law prohibits refunds of pre-tax qualified parking deductions. Employees
can stop payroll deductions at any time prior to the month that you want the Pre-Tax
Parking Fee Deduction to stop. It is recommended that you payroll deduct through
the end of the plan year, or until your academic or cyclical appointment ends each
year.
Rules governing pre-tax parking plans are set by the Internal Revenue Service (IRS)
and supersede the information contained on this web site in the event of any discrepancy.
If you have questions about the plan, contact the Transportation Services office
at parking@tamu.edu or 979.862.PARK (7275).
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What if I don't choose payroll deductions?
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CREDIT CARD or E-check is the other payment method available. Beginning July 30,
assignments will be available on the web and you may view your assignment and pay
for your permit:
Online using your credit card or E-check
OR
By mailing your printed permit information and payment to:
Texas A&M University
Transportation Services
1250 TAMU
College Station, TX 77843-1250
OR
By bringing your printed parking assignment page, picture ID, and payment to a cashier
in 108 Koldus. Payment will be processed and your permit will be mailed to the address
you designated during the registration process.
OR
Via automatic payroll deduction. If you are eligible, you may
log in online to change your payment method to this option. Then, your permit
will be mailed to the address you select. If you are not eligible for automatic
payroll deduction, you will not see this payment type listed as an option when you
review your registration information online.
*Payment must be received by
August 15 to claim your parking assignment. Permit will not be
mailed until payment is received. |
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I don't want to pay online for my permit. What should I
do?
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Register for the parking permit you desire. During step 2, designate the address
to which you prefer the permit be shipped (permits will be mailed). During step
3, Payment Method, choose the Credit Card or Echeck payment option*.
On or about August 1, you will receive an email from Transportation Services indicating
that it is time to submit payment information. Log in to the registration page and print your parking assignment. Mail
your printed permit information and payment to:
Texas A&M University
Transportation Services
1250 TAMU
College Station, TX 77843-1250
OR
Bring your printed parking assignment page, picture ID, and payment to a cashier
in 108 Koldus. Payment will be processed and your permit will be mailed to the address
you designated during the registration process.
*Payment must be received by August 15 to claim your parking assignment.
Permit will not be mailed until payment is received.
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