Payroll Deduction Permits

Commuter Services is offering an option for Payroll Deduction Permits that do not expire and do not require annual renewal.

Similar to annual and semester-based permits, Payroll Deduction Permits allow employees to park in a designated zone on campus and are subject to availability. Employees may obtain a Payroll Deduction Permit for an automobile or moped/motorcycle.

Who is eligible for payroll deduction parking benefits?

Eligibility is granted to all Board of Regents and Civil Service employees of the University of Hawai‘i at Mānoa campus with half-time (0.50 FTE) or greater appointment periods specified for the entire academic year. Graduate assistants, students, emergency hires, and casual employees are not currently eligible for this permit option.

JABSOM and UH Cancer Center employees should contact their Parking Coordinator to discuss parking arrangements and payment options.

How can I obtain a Payroll Deduction Permit?

Eligible employees who are interested in obtaining a Payroll Deduction Permit should contact their Department Parking Coordinator.

Not sure who your Department Parking Coordinator is? Your HR Representative should be able to assist you.

Why should I consider a payroll deduction parking permit? 

Payroll Deduction Permits do not expire and do not need to be renewed. This increases convenience for employees since they will not have to request a permit each year or pick it up from their Department Parking Coordinator. 

Payroll Deduction Permits also provide a predictable payment option that spreads the cost of an annual parking permit out over the course of the year. Rather than a large lump sum transaction, costs are broken into prorated amounts each pay period—an attractive option for those that prefer to manage a predictable monthly budget.

Why should I consider paying for my permit on a pre-tax basis? 

Employees who elect to pay for their Payroll Deduction Permit on a pre-tax basis have their permit payment remitted from payroll BEFORE taxes are taken out. This lowers the employee’s taxable income, which in turn reduces the amount of federal, state, and Federal Insurance Contributions Act (FICA) taxes withheld from their paycheck. 

An employee who pays on a pre-tax basis therefore effectively pays less overall than those opting for post-tax options (either via payroll deduction or lump sum). These savings are illustrated below with Surface Lot Parking Permit rates and federal tax brackets for 2023:

Means of Payment for Parking Permit
  Pre-Tax Payroll Deduction Post-Tax Payroll Deduction  Lump Sum Annual Purchase 
Gross Annual Pay (estimate) $55,000 $55,000 $55,000
Pre-tax parking contribution ($1,050) $0 $0
Gross Annual Pay (adjusted) $53,950 $55,000 $55,000
Estimated federal tax at marginal 22% rate ($7,176) ($7,407) ($7,407)
     
Net Annual Pay $46,774 $47,593 $47,593
Post-tax parking contribution  $0 ($1,050) ($1,050)
       
Effective Annual Pay $46,774 $46,543 $46,543
Effective savings from federal tax alone $231 0 0

Note: These calculations have been simplified for illustrative purposes. Actual savings amounts will vary based on an employee’s tax bracket, filing status, withholding, and other pre-tax contributions (e.g., retirement plan contributions, insurance premiums, etc.). The calculations on this page are for informational purposes only and do not constitute tax, legal, or accounting advice. Employees should consult their own tax, legal, or accounting advisors if they have questions about this payroll deduction benefit.

Frequently Asked Questions

No, the charges incurred for a Payroll Deduction Permit are equivalent to those of an annual permit. The annual cost of a permit will be divided by the total number of pay periods and automatically deducted from each paycheck. The aggregate amount deducted from each paycheck over the course of the year equates to the cost of Prepaid Annual Permits.
In fact, employees that pay for their parking permit via pre-tax payroll deduction will pay a lower effective rate since payments are made BEFORE taxes are taken out. This reduces an employee’s taxable income, which in turn reduces the amount of federal, state, and Federal Insurance Contributions Act (FICA) taxes withheld from the paycheck.
No, there are no supplemental fees or costs associated with Payroll Deduction Permits. Any fees imposed by the Commuter Services Office will be in accordance with all applicable University policies and procedures.
No, Payroll Deduction Permits do not expire and do not need to be renewed. They will remain valid as long as employees continue to pay for the permit via payroll deduction and there are no changes to the department’s parking allocation that impact the availability of parking in a given zone.
Yes, starting in 2023, all pre-tax and post-tax Payroll Deduction Permits issued will automatically renew as they do not expire and do not need to be exchanged each year. Employees will have the option to cancel their Payroll Deduction Permit at any time by submitting a payroll deductions cancellation form.
Parking rate increases will go into effect on July 1st of each year through 2024 as stated in Attachment 1 of Board of Regents Policy 10.207. Employees will be notified through various mediums including but not limited to emails, UH News Announcements and the Commuter Services website where information on parking rate increases is posted.
Yes, Commuter Services will be shifting to a rolling enrollment in 2023 to better serve employees that join the University mid-year, become eligible throughout the year, as well as those that experience a change in their commute schedule that requires them to obtain a long-term parking permit. Switching zones or obtaining a new permit for a particular zone will continue to be subject to availability.
Additional details will be communicated via Commuter Services and Department Parking Coordinators once a date for rolling enrollment has been set.
No, a Payroll Deduction Permit does not increase or decrease the chances of any employee obtaining parking in a particular zone. The policies, procedures, prioritization, utilization, and assignment of parking applies equally to all employees.
No, only one type of parking permit (i.e., automobile or moped/motorcycle) may be paid for via pre-tax payroll deduction. Costs for any additional permits must be paid on a post-tax or lump sum basis.
If a payroll 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 payroll deduction 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.
If you wish to discontinue payroll deductions, you must complete a payroll deduction cancellation form and physically return your permit to the Commuter Services Business Office. Payroll deduction changes are processed by the Department of Accounting and General Services (DAGS) and may take up to two pay periods to terminate. Please note that you will remain financially responsible for the permit fee until you return your permit and your cancellation takes effect.
Refunds are only issued for permit fees deducted from your paycheck after your permit is returned and your cancellation is complete. If two pay periods have passed and no cancellation has occurred, please contact Commuter Services immediately at parking@hawaii.edu.