Parking Deductions on a Pre-Tax Basis: Pre-Tax Parking Plan

Direct deposit sheet

As a result of recent changes to federal tax law, effective for the pay period beginning July 3, 2020 (first reflected on paychecks dated July 31, 2020), payroll deductions for UConn Health parking permits will be made on a pre-tax basis, in conformity with Section 132(f) of the Internal Revenue Code and the corresponding IRS regulations. Pre-tax deductions serve to reduce the amount of federal income tax, state income tax, and FICA tax withheld from each paycheck. While pre-tax deductions will reduce an employee’s taxable income for the purposes of income tax and social security, they will not affect an employee’s income for the purpose of the state retirement plans.

No action is required for employees who currently pay for their permits through payroll deductions, as these employees will be automatically enrolled in UConn Health’s Pre-Tax Parking Plan.

UConn Health employees who choose not to participate in the Pre-tax Parking Plan, and wish to purchase a UConn Health-issued permit on an after-tax basis, may still do so by paying the permit fee, in full, via cash, check (payable to UConn Health), or credit card at Parking, Transportation and Event Services. Payment arrangements must be made with Parking, Transportation and Event Services by July 2, 2020.

The applicable form can be obtained from Parking, Transportation and Event Services. The completed form should be returned to Parking, Transportation and Event Services.

If you have any questions, please contact parking.transportation@uchc.edu.