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CU to change payroll deductions for parking from pre-tax to post-tax on June 1
June 12, 2018 by Employee Services
Update: This story was updated on June 19, as new information became available.
The Tax Cuts and Jobs Act implemented tax code changes that no longer allow the University of Colorado to accept pre-tax parking deductions.
Effective June 1, 2018, all parking deductions will transition from pre-tax to post-tax. This change affects employee on all campuses.
If you participate in these parking deductions, you will notice the deduction type change. Please contact the department you worked with to set up your parking deductions if you have questions.
Comments
My office has recently been asking why employees have to pay to park in the first place and then at a rate higher than students. For many of us taking public transportation is not viable because one-way commute time would exceed 2 hours, so we must drive and subsequently park. Could you please explain the policy of employees paying for parking and its history?
Hi Christine,
Thank you for commenting. This is determined by campus, as rates are campus-specific. Each campus has a parking department that can be contacted for the history.
The Tax Cuts and Jobs Act eliminated parking tax deductions for the employer, but kept paying parking fees pre-tax for employees. Why can't the university keep allowing employees to pay the parking fees pre-tax?
https://www.nbsbenefits.com/newly-passed-tax-cuts-and-jobs-act-eliminate...
Hi Stephen,
Thank you for your comment. This decision was made by the University of Colorado's Controllers Office. Employee Services was not included in this decision-making process.
So, how exactly in the Unversity handling this, essentially an increase of $150+ dollars a year to full year employess. Is the rate going to drop to compensate for our additiona costs, or will the campus continue its recent avarge of $40 a year increases. I, for one, find almost three quarters of a thousand dollars absurd and in need of serious review. It is repacious.
Hi Ian,
We understand that this can be frustrating. However, rates are determined by the campus and parking authority. Any decision on this matter is made on a campus-by-campus basis.
Does this also apply to EcoPass deductions?
Hi Todd,
EcoPass is still a pre-tax.
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