Employee Payroll Deductions

Payroll Deduction Program

Use your pre-tax dollars to pay for Parking and Transportation costs. Each month, you can take money from your paycheck pre-tax and put it on a WageWorks Visa Debit card. 

This money can be used for: 

  • Parking at set locations

  • BART, AC Transit, and other fares

  • Monthly passes for transit services

How Does it Work?

After you enroll through WageWorks, the monthly deduction that you specify (up to $325.00 for parking and up to $325.00 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, 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.)

Who Qualifies?

The minimum transit order amount is $30.00 per month and you must be 0.25 FTE or more to participate.

What can I use this for? 

This money can be used for qualifying expenses in each of the two listed categories.

Parking

Transportation

Monthly Passes for UC Berkeley Lots

Pay By Phone Daily Rates

Other Daily Parking

Clipper Card 

AC Transit EasyPass

Amtrak 

Planning Your Deductions

If you are already paying for parking and transit expenses, look at your records for the past year to estimate the monthly deductions you want to make. Please note: IRS regulations prohibit the return or refund of unused transit passes or WageWorks Debit Mastercard balances. It is your responsibility to manage this for your budget–once issued to the card, this money is non-refundable. 

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.

Payroll Deduction Schedule

Orders need to be placed by the 10th of each month; WageWorks Debit Visa parking funds are loaded on the last day of the month. This means that if you want to have $30 on your debit card for 10/1, you need to submit the order on 9/10 for fulfillment on 9/30.  

Payroll deductions are taken on either a monthly or biweekly basis according to an employees' pay cycle: if you are a monthly employee it will come out of your paycheck in one lump sum; if you are a biweekly employee, the amount will be split between your two paychecks.

Commuter Subsidy and Discount Programs

Parking & Transportation provides the following subsidies:

  • $20.00 monthly subsidy for transit benefit orders of $60.00 or more.  (If you add $60.00 in transit funds to the WageWorks Debit Visa, you will only have deducted $40.00 from payroll.)

  • $10.00 monthly subsidy for transit benefit orders of $30.00 through $59.99.  (If you add $50.00 in transit funds to the WageWorks Debit Visa, you will only have deducted $40.00 from payroll.)

Employees and students making less than 300% AMI may qualify for the Clipper START  program. Participants can receive:

  • a 50% discount on BART, Caltrain, Muni, SamTrans, SF Bay Ferry, Golden Gate Transit and Ferry, Marin Transit, and the SMART train.

  • a 20% discount on AC Transit, County Connection, Wheels, WestCAT, Tri Delta Transit, Union City Transit, Sonoma County Transit, Santa Rosa CityBus, VINE, SolTrans, FAST, and City Coach.

How do I cancel an existing order? 

Login to WageWorks, scroll down, and click "Edit" to modify or cancel your order.