The UH Mānoa Commuter Services team, in conjunction with the UH System Office of Human Resources, would like to announce the return of the pre-tax parking fee deduction benefit for UH System and UH Mānoa employees parking on the UH Mānoa campus.

The Pre-Tax Parking Fee Deduction Benefit Program allows employees to pay for eligible parking fees by deducting a portion of their paycheck BEFORE taxes are taken out. When you elect to start the payroll deduction on a pre-tax basis, it reduces your taxable income. This allows you to realize savings in federal income taxes, Social Security, and Medicare (FICA). Due to recent changes in federal tax laws, up to $270 of personal parking expenses per month can be paid for on a pre-tax basis through this program.

The Pre-Tax Parking Fee Deduction enrollment period will occur as part of the annual parking permit process beginning at the end of April for the upcoming academic year. All Board of Regents and Civil Service employees of the University of Hawai‘i at Mānoa campus who are at half-time (0.50 FTE) or greater with appointment periods specified for the entire academic year are eligible. Graduate assistants, students, emergency hires, and casual employees are ineligible for this program. JABSOM and UH Cancer Center employees, please contact your parking coordinator for your specific parking arrangements and deduction options.

Read below for the FAQs!

What does the Annual Parking Permit offer?

Parking in an assigned lot at the UH Mānoa campus for the entire academic year. There is no need to submit multiple requests for parking, remembering to pay, and switching out decals every semester.

Who is eligible for pre-tax parking deductions?

Board of Regents and Civil Service employees whose home base is Mānoa campus with the following:

• ≥ 0.50 FTE (half-time employment or greater)
• appointment periods specified for the entire academic year
• No graduate assistants, emergency hires, or casual hires

When is the enrollment period for pre-tax parking deductions?

The annual permit process begins in January and ends in May. A permit must be requested as part of this process no later than April when permits are assigned to employees. Enrollment in the Pre-Tax Parking Fee Deduction Program begins in April.

New hires after this period or employees who do not enroll during this period will need to wait until the next academic year to take part in the Pre-Tax Parking Fee Deduction Program. Deduction rates are calculated based on a full academic year. However, employees who have missed the enrollment period can still obtain a parking permit by contacting their department’s parking coordinator.

How do I sign up for this benefit?

Select your zone preference via the online form in February. Once your zone is assigned by your college, school, department or office, elect payroll deduction via the online Payroll Deductions Assignment Form in April.

How do I save with this benefit?

Employees who opt into the Pre-tax Parking Deduction Program will have the amount deducted from each paycheck. The maximum amount is determined by the IRS, on a pre-tax basis to pay for parking passes or other qualified transportation expenses. Since these deductions are withdrawn on a pre-tax basis, you are saving by not paying income or Social Security taxes on the wages used to purchase parking. The net effect is that you are buying your pass at a discounted price. You may save up to 30% depending on your tax bracket, which might mean up to three to four months of free parking over the course of the year. Your gross pay will not change, but your net pay will increase, due to the lesser amount of pay subject to tax withholding.

Note: This is not tax, legal, or accounting advice. This has been prepared for informational purposes only, and is not intended to provide tax, legal, or accounting advice. Employees should consult their own tax, legal, or accounting advisors before engaging in any decision.

What happens if a deduction is missed?

If a pre-tax parking deduction is missed for any reason, including due to termination of your employment or an insufficient amount in your paycheck to cover the permit fee, you are still financially responsible for the permit fee. Failure to pay a missed deduction will result in revocation of a permit. By participating in the program, you agree that: (1) the university may withhold any overdue and outstanding parking permit fees from any amounts owed to you by the university; and (2) any outstanding balance is a debt to the university that may be collected.

Can you have more than one permit paid via payroll deduction?

No, please select either moped or car to be paid via payroll deduction. The other permit must be paid via credit card.

Can I get a refund on my permit if I purchased it using the pre-tax parking deduction plan?

No, federal law prohibits refunds of pre-tax qualified parking deductions. Employees can return their permit and stop payroll deductions at any time. However, depending on the date that the permit is returned, deductions may terminate up to two pay periods later.

How do I cancel my pre-tax parking deductions?

If you wish to stop pre-tax parking deductions during the permit year, you must return your permit to the Commuter Services office along with a payroll cancellation form. Permits must be returned along with the form to finalize permit cancellation. Payroll deductions may take up to two pay periods to stop. Note that you will remain financially responsible for the permit fee until you return your permit and your cancellation takes effect.

What should I do with the permit if my employment with the university terminates?

If your employment with the university terminates, you must return your permit. The cancellation date of a permit is the date the permit is returned to the Commuter Services office, and not your date of termination from the university. Until the permit is returned, it is considered active, and you will remain financially responsible for the permit fee.

Who can I contact if I have any questions about this program?

Employees are encouraged to contact their UH Mānoa Department parking coordinator for assistance with enrollment and cancellation questions.