The cost of parking at work is an expense that many employees have. Until now, an employee who paid for parking did so with "after-tax" dollars; that is, the money was subject to federal and state income taxes and Social Security taxes at the time it was received. Wouldn’t your employees prefer to pay for this expense with pre-tax dollars?

It is now possible to avoid these taxes on the money used to pay for parking. This opportunity is made available under a "Parking Expense Reimbursement Plan".

Here is how the Plan works.

Before the beginning of each "Plan Year", you make a decision to reduce your taxable pay by the amount you expect to pay for parking for that year. This election is consistent, except in certain limited circumstances described below. The amount of your election is withheld from you and used to pay for the cost of your parking in the manner described below and is not included in your W-2 compensation for either income or Social Security tax purposes.

The following is a list of some of the more commonly asked questions regarding the Parking Expense Reimbursement Plan.

Q. Will I have to pay taxes on these dollars?

A. No, you will never have to pay taxes on the pre-tax dollars withheld from your paycheck to pay for eligible parking expenses.

Q. How much can I have withheld from my check pre-tax for parking expenses?

A. The maximum amount you may have withheld is $2,640 per plan year or $220.00 per month

Q. How do I file a claim for eligible parking expenses?

A. Fax your claim using the P&A Claim form and include a receipt or cancelled check from your parking lot. The receipt must show the month for which you are paying for and the name of the lot. Simply complete the top of the fax cover page and put the dollar amount of your receipt in the box marked "Other".

Q. When should I submit a claim?

A. You may submit a claim any time for qualified parking expenses during the plan year

Q. How often will I be reimbursed for parking expenses?

A. You will be reimbursed at the end of the month for any receipts turned in during the month. A check will be made payable to you and sent directly to your home address. The minimum check amount is $25.00. (NOTE: This restriction does not apply at the end of the plan year).  To get reimbursements faster, sign up for direct deposit TODAY!

Q. What is the maximum amount I can be reimbursed?

A. You will be reimbursed the amount indicated on the fax claim form, up to the total amount of payroll deductions in your account at the time the check is issued. Total reimbursements cannot exceed your election amount for the plan year.

Q. Can I submit a claim after the plan year ends?

A. Yes, please check with your employer to see how much time you have to submit all remaining claims for that year. However, your expenses MUST be for parking expenses incurred during your plan year.

Q. Can I change the amount withheld from my salary?

A. You may change the amount withheld from your paycheck for parking expenses periodically (refer to SPD or contact your Human Resource Department for change allowances).

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