Payroll Deduction Updates
Transition to Virtual Permits and New Permit Rates: Effective 7/1/21, most annual employee permits (and all remaining student permits) will transition to virtual permits, which are paperless and stickerless. Employee carpool permits will continue to be sold online and in-person to allow carpool parking space access.
Payroll Deduction Campus Annual Permit Transition from WageWorks: Effective 7/1/21, payroll deductions for campus annual parking permits (e.g., C, F, H, etc.) will transition from WageWorks to our My P&T Online parking portal. As part of this transition, ALL WageWorks orders for campus annual parking permits will be cancelled and NOT be auto-renewed for 2021-2022. ALL campus annual parking permit holders will need to re-enroll in payroll deduction through My P&T Online.
AC Transit Employee EasyPass Program Suspended: Because the Employee EasyPass program has been suspended this, employees who commute to campus on AC Transit can order Clipper Cash and Monthly Passes through WageWorks (see instructions below). Parking & Transportation will provide a $10.00 monthly subsidy for transit orders of $30.00 or more. Orders placed by the next deadline (7/10/21) will be available for use by the following month (August).
Free Clipper Card: Transit Benefit Program Clipper Card Request Form
Clipper START (Discounted Fares) Program: Clipper START is a pilot program to provide single-ride discounts to eligible low-income riders. Participants can receive:
- a 50% discount on Caltrain, Muni, SamTrans, SF Bay Ferry, Golden Gate Transit and Ferry, Marin Transit, and the SMART train.
- a 20% discount on BART, AC Transit, County Connection, Wheels, WestCAT, Tri Delta Transit, Union City Transit, VTA, Sonoma County Transit, Petaluma Transit, Santa Rosa CityBus, VINE, FAST, and City Coach.
Payroll Deduction Programs
Parking & Transportation offers separate payroll deduction programs for parking and transit to help save you money on your commuting expenses, which are summarized in the table below.
|Are You Purchasing Parking or Transit?||Parking||Transit|
|What Kind of Parking or Transit Are You Purchasing?||Annual Campus Permits||Daily Permits, PayByPhone App, Parking Meters & Paystations, Non-Campus Parking (e.g., Stadium Garage, BART, City of Berkeley, etc.)||All Transit Purchases (e.g., Clipper, AC Transit, BART, Amtrak, etc.)||AC Transit Employee EasyPass|
|How Are Benefits Provided?||Monthly Recurring Payroll Deduction||WageWorks Debit Mastercard Funded from Payroll Deduction||WageWorks Debit Mastercard Funded from Payroll Deduction||This Program Has Been Suspended. To purchase an AC Transit 31-Day Local Pass, order a WageWorks Debit Mastercard below.|
|Where to Order?||My P&T Online||WageWorks (see instructions below)||WageWorks (see instructions below)|
|When to Order?||Anytime. The permit fee for annual and semester permits are pro-rated according to the purchase date.||The order deadline is the 10th of each month. WageWorks Debit Mastercard parking funds are loaded on the last day of the month.||The order deadline is the 10th of each month. WageWorks Debit Mastercard transit funds are loaded on the 19th of the month.|
|Pre-Tax Payroll Deduction Limit||$270.00 combined parking limit (combined parking amount above $270.00 limit will be taxable)||$270.00 (transit amount above $270.00 limit will be taxable)|
|Are There Other Incentives?||There is no additional incentive for parking orders.||Parking & Transportation provides a $10.00 monthly subsidy for transit benefit orders of $30.00 or more. (For example, if you add $30.00 in transit funds to the WageWorks Debit Mastercard, you will only be deducted $20.00 from payroll.)|
How Does It Work?
The payroll deduction programs offer eligible employees the ability to pay for qualified parking or transit commuting expenses with pre-tax dollars. If you enroll in a program, the monthly deduction that you specify (up to $270.00 for parking and up to $270.00 for transit) is deducted from your pay before federal, state and FICA taxes are calculated. Your taxable income is reduced, and consequently, your taxable income reflected on your annual W-2 statement is reduced.
While your payroll deductions are exempt from federal, state, and FICA taxes; however, they are not exempt from UCRP retirement contributions. Your commuter benefit deductions have no impact on any other employer-provided benefits that are based on your salary, such as the Health FSA (Flexible Spending Account).
Depending on your salary, your Social Security deductions may also be reduced by your payroll deductions. This means your Social Security benefits at retirement also may be reduced, because you have paid Social Security taxes on a lower wage amount. You should take this into consideration as you make your decision about enrolling. (For more information, you may wish to consult your tax advisor or financial planner.)
Planning Your Deductions
If you are already paying for parking and transit expenses, you probably know your monthly expenditures. By looking at your records for the past year, you can estimate the monthly deductions you want to make. You must estimate your eligible expenses very carefully, as IRS regulations prohibit the return or refund of unused transit passes or WageWorks Debit Mastercard balances.
Pre-tax commuter benefits are governed by Internal Revenue Code Section 132(f)(2)(A), which is subject to Congressional action and/or IRS cost-of-living adjustments.