At the University of New Haven, eligible employees are allowed to purchase parking permits. All purchases are through payroll deduction.  Employees have a choice of having their parking permit deductions computed on a pre-tax or post-tax basis.  Parking permits are available to employees on a pre-tax basis under the IRS qualified transportation fringe benefit rules.  

Since participation in the pre-tax plan will reduce the amount of an employee’s taxable compensation, there could be a slight decrease in the employee’s future social security benefits, which are based on taxable compensation.  If you have questions about the pre-tax or post-tax options, please consult with a tax professional.

Eligible employees who elect to participate in the Campus Parking Plan must fill out the Campus Parking Plan Payroll Deduction Enrollment/Waiver & Cancellation Form (PDF). 

The Campus Parking Plan Payroll Deduction Enrollment / Waiver & Cancellation Form should be submitted to campus police, who will match up the form with your online enrollment and then pass the form to the payroll department.  

Questions and Answers: 

1.  What is the meaning of pre-tax?

• Pre-tax means that the cost of the employee’s parking permit will be deducted from gross pay (up to the IRS established limit) before state and federal taxes are calculated.   

2.  Who can participate in the pre-tax plan?

• At this time only full-time faculty and professional / practitioners-in-residence (PIR’s) will be offered an option to park on campus.

3.  How does an employee enroll in the pre-tax plan?

• All parking deductions will be made by default on a pre-tax basis unless the employee signs a waiver form indicating that he or she has chosen to opt-out of the Plan.  If an employee chooses to opt-out, payroll parking deductions will be made on an after-tax basis.  Employees may change this election for future parking deductions during the two open enrollment periods between August 12th through August 18th and December 1st through December 15th each year.

4.  What tax advantages are available through the pre-tax plan?

• This benefit could result in savings to individual employees by reducing the amount of federal and state taxes withheld from his/her pay.  The employee can reduce the amount of pay subject to income and FICA tax withholdings, and increase his/her spendable income.  An employee’s gross pay will not change, but his/her net pay will, due to the lesser amount of pay subject to tax withholding.  Savings will vary depending on the effective tax rate of the employee.  If you have questions about the tax benefits of this plan, please consult a tax professional for assistance.

5.   Can an employee stop participating in the Plan at any time?

• An employee may stop participation in the pre-tax plan only during the two open enrollment periods by giving written notification to the Payroll Department using the Campus Parking Plan Payroll Deduction Enrollment / Waiver & Cancellation Form.  The payroll deductions will be revoked starting with the first pay period following receipt of the notification by the Payroll Department.  In addition, employees may only change their tax deduction election during the two open enrollment periods.  Participation in the Plan will also end upon termination of employment.

7.  Where should I send the payroll deduction form?

• The Campus Parking Plan Payroll Deduction Enrollment / Waiver & Cancellation Form should be submitted to campus police, who will match up the form with your online enrollment and then pass the form to the payroll department.

8.  The Campus Parking Plan Payroll Deduction Enrollment / Waiver & Cancellation Form is available online, but why can’t I submit it online?

• Because the parking plan reduces an employee’s take home pay, it is current practice for the Payroll Department to receive an authorization containing an employee’s signature.  A signed form authorizing and agreeing to specified terms is required to process any type of payroll deduction.  The signed form becomes a part of the employee’s file and is utilized if questions arise in the future.