Pre-Tax Parking
Program

Third Party Pre-Tax Parking Reimbursement Account Program

​​This is not a subsidy program. The California Department of Human Resources (CalHR) administers the Third Party Pre-Tax Parking Reimbursement Account Program (Program). CalHR contracts with a third-party vendor, Application Software, Inc. (ASI) for recordkeeping and claims adjudication.

General Information

You may participate in this program if you are a state employee who does not have access to a state-controlled or owned (DGS, Caltrans, etc.) parking lot/space or a department–administered parking program. 

The Third Party Pre-Tax Parking Reimbursement Account Program is a voluntary payroll deduction program that allows you to deduct a specific dollar amount for work-related parking fees from your paycheck prior to tax deductions; this reduces your taxable income. The funds taken out of your paycheck go into a special reimbursement account that you will claim against. To receive payments from your account, you must complete and submit a CalHR 681 – Account Claim Form (CalHR 681)opens in a new window along with the required parking receipts to ASI or submits claims via your ASI online account.  To enroll in this program, you must complete and submit a CalHR 682 – Account Enrollment Form (CalHR 682) to your departmental personnel office.opens in a new window 

Once the deduction begins for the Program it will continue without interruption until a cancellation or change is requested. 

At the end of the tax year, the State Controller’s Office (SCO) will report your taxable income as usual, excluding the amount of the pre-tax parking deduction from your gross taxable income. For the 2026 tax year, you can deduct your actual cost of parking, up to $340​ per month.

The Program is governed by section 132(f) of the Internal Revenue Code – Qualified Transportation Fringe Benefits.

The Internal Revenue Code defines “qualified parking” as:

• Parking on or near the employer’s business premise or at a location from which the employee commutes to work by carpool, commuter highway vehicle, mass transit facilities, transportation provided by any person in the business of transporting persons for compensation or hire, or by any other means. 

Unless specific criteria are met, the Internal Revenue Code does not allow for automatic refunds of excess money in your Program account. Please read the Frequently Asked Questions and Forfeiture Information below. 

For questions concerning the status of a claim or your account balance, please contact ASI at (800) 659-3035 or visit the ASI website.

For more information on this program or eligibility, please contact your department’s personnel office.

Eligibility

All active state employees designated rank-and-file, managerial, supervisory, confidential, and excluded, including: constitutional officers, employees of the Judicial Council, and supreme, appellate, and superior court judges are eligible to participate in the Third Party Pre-Tax Parking Reimbursement Account Program.    

Eligibility Criteria: 

1. You drive a personal vehicle to work or to a location from which you commute to work
2. You pay for work-related parking in a paid facility and receive a receipt
3. You currently do not have a DGS or department-administered parking lot/space

Your eligibility begins the first month following your first payroll deduction (IRC requirement).

For Example:
If your first payroll deduction is taken from your June pay period (issued July 1), you can start submitting work-related parking claims for expenses beginning on or after July1. 

Enrollment, Changes to Enrollment, and Cancellations

Enrollment:
To enroll, please complete the CalHR 682 – Reimbursable Account Enrollment Form and submit it to your departmental personnel office.

• The effective date of the enrollment will be based on when the form is successfully processed by SCO. Departmental personnel offices should ensure that the CalHR 682 form is submitted to SCO without delay to ensure timely processing.  
• The program does not allow retroactive pre-tax parking deductions. 

Changes to Enrollment:
You may increase or decrease your pre-tax parking payroll deduction at any time by completing the CalHR 682 – Reimbursable Acc​ount Enrollment Form and submitting it to your departmental personnel office. 

• The effective date of the deduction change will be the first of the month after the form is successfully processed by SCO. Departmental personnel offices should ensure that the CalHR 682 form is submitted to SCO without delay to ensure timely processing.  
• The program does not allow retroactive pre-tax parking deductions. 

Cancellations:
You may cancel your pre-tax deduction at any time by completing the CalHR 682 – Reimbursable Account Enrollment Form and submitting it to your departmental personnel office.

• The cancellation will be effective in the current pay period if the form is processed by SCO before cutoff.  
• The program does not allow retroactive pre-tax parking cancellations. 
• If funds remain in your Pre-Tax Parking Reimbursement Account and you are still an active State employee, you have one year from your last activity (deduction or claim) in which to submit claims for reimbursement of work-related parking. Claims must reflect costs incurred while you were an active participant in the Program. Costs incurred after your last date of eligibility are not eligible for reimbursement. You will forfeit any funds remaining in your account after these time frames expire.
• If you are separating from state service and funds remain in your Pre-Tax Parking Reimbursement Account, you have one year from your date of separation in which to submit a claim for reimbursement of work-related parking expenses incurred prior to your separation. Claims must reflect costs incurred while you were an active participant in the Program. Costs incurred after your last date of eligibility are not eligible for reimbursement. You will forfeit any funds remaining in your account after these time frames expire.​

Parking Lot Transfers

This Program differs from the Department of General Services or department-administered parking program in the way that they are coded and processed. You must cancel your reimbursement account deduction when you transfer from a private parking lot to a Department of General Services​ or department-administered lot. Otherwise, you will have duplicate pre-tax parking deductions taken from your paycheck and could face forfeiture of unclaimed funds in your pre-tax parking reimbursement account. 

Claims Process

• Each month, the authorized pre-tax dollar amount is deducted from your paycheck and goes into a reimbursement account.   
• The deduction for each pay period can be used to reimburse parking fees incurred in the following month or later (e.g., the deduction taken in the July pay period can be used for parking fees incurred in August or later). 
• Pay your work-related parking expenses out-of-pocket and receive a receipt or proof for all qualified parking expenditures. 
• Complete a CalHR 681 – Account Claim Formopens in a new window or submit claim via your ASI online account. When you submit the online form or sign the claim form, you are attesting that the reimbursement is for “qualified parking expenses” and that you meet the eligibility criteria.  
• Submit the completed CalHR 681 – Reimbursable Account Claim Form, along with the required payment documentation, to ASI. You may submit the documentation via fax, mail, or through your online ASI account. ASI must receive your claim by the 15th of the month to be included in that month’s processing cycle.
• Approved reimbursement payments are typically issued by SCO at the end of each month. You are encouraged to submit claims as soon as you pay your parking fees. You do not have to wait until the end of the month. 

Other Pre-Tax Parking Programs

The State of California offers two other types of pre-tax parking payroll deductions. 

State-owned Parking Facilities (Department of General Services, CalTrans, etc.)
This pre-tax parking payroll deduction program is available to any state employee who has or can acquire a parking space in a state-owned garage or parking lot managed by the state. The State Controller’s Office deducts the parking fees from your check and remits them directly to the state department. Contact your department’s parking coordinator for more information. 

Department-Administered Parking
Departments that have “in-house” parking programs administer their own programs. State Controller’s Office deducts the parking fees pre-tax from your check and transfers them to the department who then pays your parking fees. Contact your department’s parking coordinator for more information. ​ 

Related Forms

• CalHR 681 – Account Claim Form 
• CalHR 682 – Account Enrollment Form 

Forfeiture Information

• If you are an active state employee, you have one year from the date of your last activity (deduction or submission of a claim) to submit a claim for reimbursement. Claims must reflect costs incurred while you were an active participant in the Program and include valid parking receipts. Costs incurred after your last date of eligibility are not eligible for reimbursement.
• If you separate from state service, you have one ​year from your date of separation in which to submit a claim for reimbursement of work-related parking expenses incurred prior to your separation. Claims must reflect costs incurred while you were an active participant in the Program.
• Costs incurred after your last date of eligibility will not be processed.
• If you do not submit valid Program reimbursement claims within these specified time periods, you will forfeit the remaining balance in your account. 

Contact Information

Frequently Asked Questions