P&TS - Payment Options: Pre-Tax Q & A

For drivers,
this means that the entire cost of your Stanford University parking permit is exempt from federal taxes.

For transit riders,
this means that the first $230 of monthly fares and passes are exempt from Federal taxes, and California income and VDI taxes. If your monthly pass costs more than $230 you also won't be charged California income and VDI taxes on the amount above $230.

For vanpool participants,
both Enterprise and VPSI will accept commuter checks. This means that the first $230 of your commuter check purchase is exempt from Federal taxes. In addition, your entire cost of commuter checks will be exempt from California income and VDI taxes. This applies only to the amount you pay to the vanpool company and excludes payments for gas or coffee and donuts!

Questions?
Any questions concerning eligibility for and operation of the Program should be addressed to the Stanford Office of Parking & Transportation Services, 340 Bonair Siding, Stanford, CA 94305-7255.

How do I know if I am eligible?

If you are a permanent/continuing employee of Stanford University or a regular employee of Stanford Hospital and Clinics, you are eligible to join the program. You are not eligible if you are employed on campus but are not paid directly by the University or the Hospital.

How do I enroll?

There is no "enrollment" process per se. If you are eligible to participate, all you need to do is purchase your long term parking permit, transit passes or commuter checks using payroll deduction as the method of payment. A salary reduction agreement is embedded within the application.

Can I still use the web to order my permit?

Yes. In fact, it's the way we prefer you buy your parking permits! By inputting your University or Hospital file ID number, we can confirm your eligibility online. All you need to do is log in on our online applications and follow the instructions. On the online application, you can choose to either pick up your permit at our office or have us send it to you via U.S. Mail.

When will the money be deducted from my paycheck?

Transit passes/Commuter checks
All deductions for transit passes and commuter checks will occur as a series of monthly deductions. At the time of initial purchase, individuals will determine their monthly transit cost and lock into a deduction schedule for the rest of the year. For those who choose to purchase transit passes all year round, deductions will be made through August, and for those who purchase passes through the Academic calendar year, deductions will continue through June. The initial deduction will occur on the second paycheck prior to receiving the monthly pass. Individuals will have the option of obtaining their passes each month at the Parking & Transportation office or request for U.S. mail delivery to their home address.

Parking
Depending on the date of your purchase, payments will be deducted from either your first or second check during the month.

Is there a limit to what type of parking permit or transit pass I can buy?

• annual and 10-month 'A' and 'C' parking permits;
• Multi-month and one-day 'scratcher' permits (University employees ONLY)
• Transit passes (ACE Train, BART, Caltrain, Muni, and SamTrans), Caltrain parking permits, and Commuter Checks.

Of course you can still buy transit passes for yourself, friends or family. You just can't do it using payroll deduction.

If I use less than the monthly cap in one month, can I roll it over to the next?

No. If your transit pass or parking permit only costs you $50 in any one month that is all you are eligible to use. You begin the next month with a new capped amount. These monthly caps are expected to increase in future years as the cost of living increases.

Can I buy transit passes for other members of my family on a pre-tax basis?

No. The tax laws specifically state that the transit passes/commuter checks purchased with pre-tax dollars must be for an employee's personal commuting use only. The same applies for parking permits. Of course you can still buy items for friends and family using another form of payment.

If I don't use payroll deduction, can I still get a transit pass or parking permit pre-tax?

No. Only items purchased using payroll deduction are eligible to be purchased with pre-tax dollars. Likewise, payroll deduction is not a payment option for strictly after-tax purchases. So if you don't want to participate in the program you just have to use some other form of payment. We operate an Automatic Bank Deduction Program and we accept checks, credit cards, cash and commuter checks (for transit passes only).

What if I am in a vanpool?

If you are in a vanpool, you are eligible to purchase commuter checks with pre-tax dollars. The commuter checks are accepted by Enterprise and VPSI. The same purchasing process that applies to Transit Pass purchases also applies to Commuter Check purchases.

Can I return or exchange my permit or transit pass if I purchased it with payroll deduction?

Future transit pass deductions may be changed or terminated by the 9th of the previous month of cancelation.

Example: The current month is August. If you want to cancel or change your transit pass deduction for October, you must do so by September 9.

To make changes: Submit the "Pre-Tax Payroll Deduction for Commuting - Application" form

To cancel: Submit the "Pre-Tax Payroll Deduction for Commuting - Cancellation" form

Participants may upgrade, downgrade, or cease participation in the pre-tax payroll deduction program prior to their scheduled monthly deductions; however, participants may not make changes to any deductions already made for the current month. In addition, there will be no refunds for the unused portion of current month's permit or unused 'scratcher' permits. The return of a permit (excluding daily 'scratcher' permits, which are non-returnable) will result in the cancellation of future scheduled payroll deductions.

There are no returns of transit passes or commuter checks. Under special circumstances, future transit pass deductions may be changed or terminated by the 9th of the previous month of cancelation by the participant upon written request. If your mass transit expenses for the year turn out to be less than your annual payroll deductions for the year, the balance will be returned to you as taxable income.

Will this affect my salary reductions for other benefits?

No. Your Stanford-provided benefits would not be affected. However, since the Program has the general effect of lowering participants' taxable income (as reported on Form W-2), however slightly, Social Security benefits may be reduced for certain participants (i.e., those who do not reach the annual FICA wage cap [$87,000 in 2003, as per Connie Reddy, Tax Compliance Payroll]).

Questions?

Any questions concerning eligibility for and operation of the Program should be addressed to the Stanford Office of Parking & Transportation Services, 340 Bonair Siding, Stanford, CA 94305-7255. Stanford Hospital and Clinics employees can contact the Hospital Parking Liaison at 650-723-4748.