What is the Pre-Tax Payroll Deduction Plan?
The TAMU Pre-Tax Parking Deduction Plan allows eligible employees to pay for TAMU parking permits with pre-tax dollars beginning with parking permits for the period of August 15, 2009 through August 14, 2010. This pre-tax benefit is available only through payroll deduction for qualified parking, as defined by the IRS and established by TAMU. Appropriate deductions will be made before federal, state, Social Security, and Medicare taxes are calculated. As a result, your taxable income is reduced, as well as your taxable income reflected on your annual W-2 statement. An employee’s gross pay will not change, but the amount of pay subject to tax withholdings will be reduced. The effect is that the participating employees will have an increase in their net pay because less tax will be withheld from their pay. If you are enrolled in payroll deduction for the payment of your parking permit, participation in the plan is automatic unless you choose otherwise. Any employees enrolled in payroll de
The TAMU Pre-Tax Parking Deduction Plan allows eligible employees to pay for TAMU parking permits with pre-tax dollars. This pre-tax benefit is available only through payroll deduction for qualified parking, as defined by the IRS and established by TAMU. Appropriate deductions will be made before federal, state, Social Security, and Medicare taxes are calculated. As a result, your taxable income is reduced, as well as your taxable income reflected on your annual W-2 statement. An employee’s gross pay will not change, but the amount of pay subject to tax withholdings will be reduced. The effect is that the participating employees will have an increase in their net pay because less tax will be withheld from their pay. Participation in the plan is automatic unless you choose otherwise. Any employees enrolled in payroll deduction for the payment of their parking permits who DO NOT wish to participate in the pre-tax benefit must complete and submit to Transportation Services the Texas A&M U
