Payroll deduction for parking and carpool permits

Pre-tax purchases are made only through payroll deduction. Customers may enroll or change their enrollment in the program throughout the year. P&TS will provide a report to the employee’s payroll department every pay period containing all of the deductions applicable for that pay period.

How it works

• To maximize participant benefits in the program, all permit costs will be divided into a series of monthly payroll deductions rather than from a single paycheck. This way, the monthly cap is not reached and the entire cost of the permit will be deducted from an individual's pre-tax income.
• One deduction will be taken per month. Depending on the date of your purchase, payments will be deducted from either your first or second check during the month.

Deductions for all permit purchases will continue until the full price of the permit is paid or until the permit is returned (Daily 'scratcher' purchases occur as a one-time deduction, and permits are non-refundable). Employees are responsible for monitoring their paychecks to ensure that proper deductions are being made for parking permits. An employee who chooses to pay for a parking permit through payroll deduction is liable for payment as long as the permit has not been returned to P&TS or until the permit expires.

Participants must notify P&TS if they will no longer be on the University or the hospitals’ payroll system for any reason. P&TS reserves the right to deny participation in the program if more than one scheduled deduction is missed.

Payroll deduction for transit passes, Clipper Cash, Commuter Checks, and Caltrain parking permits

All deductions for transit passes, Clipper Cash, Commuter Checks, and Caltrain parking permits, will occur as a series of monthly deductions. At the time of initial purchase, individuals will determine their monthly costs and establish a recurring deduction schedule. The entire amount of a single month's transit expense will be deducted from one paycheck per month and monthly deductions will continue until cancelled (cancellation policy below). Payroll deductions will be automatically adjusted if the price of the chosen transit pass changes.

Individuals will have the option of obtaining their passes each month at Parking & Transportation Services or requesting U.S. postal delivery to their home address. There is a monthly cap (currently $255) on the amount that can be excluded from taxes; any excess above this monthly amount will be subject to income tax and FICA withholding.