Subject

CUNY Pre-Tax Parking Program

Purpose

Affected Employees

All CUNY employees

Effective Date(s)

Institution paychecks dated March 22, 2012

Background

At the request of the City University of New York, the Park–N-Ride Plan will allow the use of pre-tax and post-tax payroll deductions to pay for qualified parking. Only transit-related parking is eligible.

Qualified parking is parking provided to employees on or near the business work premises, or parking on or near a location from which employees commute to work by commuter highway vehicle, mass transit, or vanpool.

The maximum nontaxable value is $240 per month in the calendar year 2012.

New Deductions Codes

Two new Deduction Codes have been established for this program as follows:

446 - CUNY Pre-Tax Parking Benefit: This code is to be used to process pre-tax deductions.
447- CUNY Post-Tax Parking Benefit: This code is to be used to process post- tax deductions.

The Payroll System will allow for deduction processing for the first two Institution paychecks of each month. There will be no deductions taken in the third paycheck of months where three paychecks are issued.

Note: Deduction Code 440 (CUNY Admin Fee Transit Benefit) will continue to remain a monthly deduction and will be taken for all participants in this program on the first Institution check date of each calendar month. Agency update access is not available for Deduction Code 440. Refer to Payroll Bulletin No. CU-423 for more information.

Agency Actions

On-Line Data Entry of Deduction Codes

Agencies must access the General Deduction CD (Agency) page and enter Deduction Codes 446 and 447 (if participant exceeds the monthly  Pre-Tax maximum) with the applicable effective date and flat amount based upon the plan option or fee amount.  

An employee’s monthly deduction amount is indicated on the Park-N-Ride Plan Enrollment Form, therefore, the monthly deduction amount must be divided by two and the result entered into the Payroll System to initiate the biweekly deduction.

Salary Refund Exchange Processing (AC230s)

All deductions taken for the CUNY Pre-Tax Parking program are “unrecoverable”.  Refer to Payroll Bulletin No. 165 for specific instructions on this process.

Questions

Questions regarding this bulletin may be emailed to the Payroll Deduction mailbox.