Qualified Transportation Plan

Purpose

This policy is to establish and recognize the College’s Qualified Transportation Plan in accordance with Section 132(f) of the Internal Revenue Code. This plan excludes from taxable income amounts used to pay for qualified transportation benefits. The College plan includes eligible employee deductions of parking fees on a pre-tax basis through payroll deduction. This policy is administered and overseen by the Administrative Services Division.

To Whom Does This Policy Apply

This policy applies to all College employees who purchase College parking passes. Eligible employees are automatically covered by the policy unless they elect to opt out of the plan in writing. This policy does not apply to student employees.

References

26 CFR Section 1.132.9 - Code of Federal Regulations Qualified Transportation Fringe

WAC 132V-116 - Parking and Traffic Rules and Regulations

IRC 132(f) - Qualified Transportation Fringes.

IRS Publication 15-B - Employer’s Guide to Fringe Benefits.

Definitions

IRS: United States Internal Revenue Service.

Pre-tax: Not subject to federal income tax, social security tax, or Medicare tax.

Qualified Parking: A College purchased parking pass that falls within the current exclusion limit as defined by the Internal Revenue Code (IRC). 

Policy

The College shall offer a Qualified Transportation Plan in accordance with IRS regulations that allows eligible employees to make payment for parking fees on a pre-tax basis through payroll deduction.

Federal tax law prohibits refunds of pre-tax qualified parking deductions. Employees are not entitled to parking refunds upon termination of employment.

An eligible employee may opt out of the plan and choose not to purchase a parking pass on a pre-tax basis. Employees who opt out of the qualified transportation plan may purchase a parking pass on an after-tax basis.