Upcoming tax changes regarding the parking deduction
by Michelle Saport |
The Tax Cuts and Jobs Act passed by Congress in December 2017 ushered in changes to tax rates and to deductions and benefits for employees and employers across the country.
Earlier in calendar year 2018, most University of Alaska employees noticed more take home pay in their paychecks as a result of tax rate changes.
The new law also has specific impacts to employer-provided transportation benefits, including how employee parking deductions are treated. As a result, employees' parking deductions will become an after-tax deduction on their paycheck rather than a pre-tax deduction. Employees using the payroll deduction program to pay for parking permits will first see the effect of this required change on their Aug. 3 paycheck.
The impact to each employee will vary depending on an individual's tax bracket and the amount paid for parking.
You do not need to do anything to effect this change; if you wish to continue using the payroll deduction program, you may do so. If there are any technical questions about this change, please contact Myron Dosch, chief finance officer, at firstname.lastname@example.org or (907) 450-8079.
Reminder: To enroll in the payroll deduction program, fill out and sign the Payroll Deduction Form. Drop off the completed form at Parking Services office (Eugene Short Hall, Suite 125) or send via inter-campus mail.