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?
Employees Who are Currently Enrolled in Payroll Deduction:
Individuals who currently participate in payroll deduction will be afforded an opportunity to opt-in for a Payroll Deduction Permit starting in January 2023. Enrollment forms must be submitted by 11:59pm on February 17th, 2023. In April 2023, Commuter Services will issue new Payroll Deduction Permits to Department Parking Coordinators. Employees must surrender their current permit to their Department Parking Coordinators in exchange for the new permit.
Not sure who your Department Parking Coordinator is? Your HR Representative should be able to assist you.
Employees Who Currently Possess Prepaid Permits:
Eligible employees with prepaid permits will have the opportunity to obtain a Payroll Deduction Permit when their current permit expires. As a reminder, 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.
Eligible new employees will be able to obtain a Payroll Deduction Permit during the onboarding process, pending availability in their desired parking zone.
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
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.
I’m not currently eligible for a Payroll Deduction Permit or am not interested at this time. Will I have a chance to participate at a later date?
Additional details will be communicated via Commuter Services and Department Parking Coordinators once a date for rolling enrollment has been set.
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 email@example.com.