UCSD CAMPUS NOTICE University of California, San Diego |
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OFFICE OF THE ASSISTANT VICE CHANCELLOR - HUMAN RESOURCES August 4, 1998 ALL AT UCSD (Including UCSD Medical Center) SUBJECT: Proposed Pre-Tax Parking Fee Program This Notice is provided to the campus community as an initial notification and opportunity to comment about a proposed pre-tax parking fee program. The University proposes to implement a pre-tax parking program applicable to employees who pay for parking by payroll deduction. Effective with paychecks issued on September 1, 1998, it is proposed that all eligible employees' payroll deductions for parking be taken on a pre-tax basis, up to the IRS limit of $175 a month (at UCSD, there are no parking fees that exceed the $175 IRS limit). Eligible employees wishing these deductions to be taken on an after-tax basis would need to complete the enrollment/cancellation form (Pretax Transportation Deductions Enrollment or Cancellation Form), which can be found on the Web at http://www.ucop.edu/payroll/forms.htm This program, which is based on recent changes in the Federal tax laws, would result in tax savings. Eligible staff employees include both non-exclusively represented employees and exclusively represented employees currently covered by collective bargaining agreements. Application of the program to exclusively represented employees not currently covered by collective bargaining agreements would be subject to notice, meeting and discussing, consulting or conferring, as appropriate. Under the proposed pre-tax program, payroll deductions would not be subject to withholding for Federal income taxes and FICA taxes (i.e., Social Security and Medicare). The exact amount of savings an employee would realize will depend on the employee's Federal tax bracket and whether the employee is subject to full or partial FICA coverage. California has not adopted the Federal law changes governing transportation benefits. As a consequence, these deductions would still be subject to State income tax withholding. Reducing current taxable income for the proposed pre-tax program may impact the maximum an employee can contribute annually to the Tax-Deferred 403(b) Plan and the Defined Contribution Plan After-Tax Account. Any possible impact would depend on the employee's individual circumstances. Pre-tax deductions do not affect the salary used in calculating benefits under the University of California Retirement Plan (UCRP). The proposed pre-tax deduction process and impact are similar to those tax savings programs currently in place, such as medical insurance premiums for Prudential High Option, UC Care, and Health Net. General inquiries and comments regarding the content of this Notice should be directed to Jonnie Craig-Winston, Director of Policy Development and Quality of Work/Life, at (619) 534-9659 or jcraig@ucsd.edu by August 14, 1998. Specific inquiries regarding the pre-tax parking deductions for Tax-Deferred 403(b) Plans and the Defined Contribution Plan After-Tax Account should be directed to the Benefits Representative designated for each vice chancellor's area at (619)534-2816. Specific parking fee inquiries may be directed to the Parking and Transportation Office at 619)534-4223. Specific inquiries regarding payroll issues should be directed to Eric Holmes, Campus Payroll Office, at (619)534-3249. Rogers Davis Assistant Vice Chancellor - Human Resources |