Payment Information

Student Payment Information

How do I pay for my permit?

Your permit will be billed to your student fee account. Changes in your enrollment status may cause you to become ineligible for Student Fee Account payment transfer. If you become ineligible, your permit will be held until it is paid in full or until it is revoked for non-payment on August 26, 2024, whichever occurs first.

When is payment due?

Your permit will be placed on your Student Fee Account approximately the first week of August. Payment is due by the date specified by Student Billing Services.

Faculty/Staff Payment Information

How does payroll deduction work?

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 not be active until it is paid in full. Permits not paid by August 26, 2024 will be offered to the next customer waiting.

What is the Pre-Tax Payroll Deduction Plan?

The Texas A&M University Pre-Tax Parking Deduction Plan requires eligible employees to pay for TAMU parking permits 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 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 the 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 employees will have an increase in their net pay because less tax will be withheld from their pay. Participation in the plan is required for employees choosing to participate in payroll deductions for the payment of their parking permit.

The Texas A&M University 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.)

Who is eligible for pre-tax parking deductions?

Anyone choosing payroll deduction will be enrolled in the Texas A&M University Pre-Tax Parking Deduction Plan.

Those eligible to participate in the Texas A&M University Pre-Tax Parking Deduction Plan are employed by Texas A&M University in a position budgeted for a minimum of 4.5 months AND at least 25% effort. Participation requires enrollment in payroll deduction for the payment of your parking permit.

Do I have to enroll in the Texas A&M University Pre-Tax Parking Deduction Plan? Is it mandatory for all employees?

Enrollment in the Texas A&M University Pre-Tax Parking Deduction Plan is required for eligible employees. Employees wishing to opt out of the pre-tax plan can do so by paying the entire balance of their permit in full.

How is the Texas A&M University Pre-Tax Parking Deduction Plan implemented?

Employees enrolled in payroll deduction for the payment of their parking permits are automatically enrolled in the Texas A&M University Pre-Tax Parking Deduction Plan. Employees who are not currently paying for these expenses through payroll deduction must authorize 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 terminate the plan or separate from Texas A&M University employment.

If you choose to discontinue your participation, you must follow the permit cancellation process and pay the balance of your permit in full.

Does using pre-tax parking deductions cause any other changes in my payroll deductions?

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.

Specifically, how will I see my deductions reflected on my paycheck detail?

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

Can I still use payroll deduction for my parking permit without enrolling in the Texas A&M University Pre-Tax Parking Deduction Plan?

No. If you don't wish to participate in pre-tax parking deductions, you must pay the entire balance of your permit in full.

How do I make changes in my pre-tax parking deduction enrollment?

If you elect to discontinue your participation in the Texas A&M University Pre-Tax Parking Deduction Plan, bring your photo ID and permit to Polo Rd. Building, Suite 350 and pay the permit balance due in full.

What expenses are eligible for pre-tax parking deductions?

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 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.

How much can I contribute for pre-tax parking deductions?

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 Texas A&M University parking permit exceeds this limit.

Since the benefit is on a pre-tax basis, are tax-deferred contributions affected?

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.

How do I save with this benefit?

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 by 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:

1. John Doe is a Texas A&M University employee who parks in Lot 51, spending $25.00 per month for his parking permit. John is in the 15 percent tax bracket:
   Savings on TAMU permit: $25.00 x 12 months x 15 percent = $45.00 per year
2. Mary Smith is a Texas A&M University employee who parks in a numbered space in Lot 66, spending $48.67 per month for her parking permit. Mary is in the 28 percent tax bracket:
   Savings on TAMU permit: $48.67 x 12 months x 28 percent = $163.53 per year

Can I get a refund on my permit if I purchased it using the Texas A&M University Pre-Tax Parking Deduction Plan?

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 by paying their permit balance due in full. 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 website in the event of any discrepancy. If you have questions about the plan, contact the Transportation Services office at parking@tamu.edu or 979.862.7275 (PARK).

What if I don't choose payroll deductions?

Payment must be received by August 26, 2024 to claim your parking assignment. Permits will not be mailed until payment is received.

Pay online with CREDIT CARD or E-check. Beginning August 1, 2024, assignments will be available via My Account and you may pay for your permit.

OR

Mail a check, payable to Texas A&M University and include your printed permit confirmation to:

OR

Pay in person by bringing your picture ID and payment to Polo Rd. Building, Suite 350. Payment will be processed and your permit activated.

I don't want to pay online for my permit. What should I do?

Register for the parking permit you desire. On Step 2, choose the Credit Card payment option*. No later than August 1, 2024 you will receive an email from Transportation Services via TAMU email indicating that it is time to submit payment information. Login to My Account, print your parking assignment and mail your printed permit information and payment (check) to:

OR

To pay in person, bring your picture ID and payment to Polo Rd. Building, Suite 350. Payment will be processed and your permit activated.

*Payment must be received by August 26, 2024 to claim your parking assignment. Permit will not be mailed until payment is received.