Third Party Pre-Tax Parking Reimbursement Program
Program Description:
The Third Party Pre-Tax Parking Reimbursement Account Program is a voluntary payroll deduction program that allows employees to deduct a specified pre-tax dollar amount for work-related parking fees. Money is deducted from the employee’s paycheck prior to tax deductions. As a result, the employee’s taxable income is reduced. Once the employee’s pre-tax parking deduction is established, it continues without interruption until terminated or changed by the employee. At the end of the tax year, the State Controller’s Office (SCO) will report the employee’s taxable income as usual and excludes the amount of the Third Party Pre-Tax Parking Reimbursement Account Program deduction from their gross taxable income.
The Program is administered by CalHR, which contracts with a third-party claims administrator for record keeping and claims adjudication. The current vendor is Application Software, Inc. (ASI).
Eligible Employees:
All 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 specific to the Third Party Pre-Tax Parking Reimbursement Account Program are:
- Employee drives a personal vehicle to work or to location from which they commute to work.
- Employee pays for work-related parking in a paid facility providing a receipt.
- Employee does not have a DGS or department-administered parking lot/space.
The Benefits Administration Manual provides departments with more information on this program.
For policy information and governing authorities for this program please visit the CalHR HR Manual – 1601 Third Party Pre-Tax Parking Reimbursement Account Program Policy.