The CSU Pre-Tax Parking Deduction Plan allows eligible employees to pay for CSU
parking expenses with pre-tax dollars. This pre-tax benefit is available only through
payroll deduction for qualified parking as defined by the IRS and established by each
campus (e.g., CSU owned, leased or contracted parking facility). For an eligible
employee, participation in the Plan is automatic unless the employee chooses otherwise.
Deductions are taken from an employee's paycheck before federal, state, Social Security,
and Medicare taxes are calculated. An employee's taxable income is reduced, and consequently
taxable income reflected on an employee's W-2 statement is reduced.
The IRS limits qualified parking expenses to parking at or near an employee's work location or
at a location from which an employee commutes to work by carpool. The CSU Plan allows a pre-tax
benefit only for qualified parking paid for by the employee through payroll deduction. Not all
parking expenses allowed under IRS rules may be eligible through payroll deduction as prescribed by
campus policy and the State Controller's Office.
IRS Code Section 132(f) limits the amount of qualified parking that may be excluded from an
employee's taxable income. For further information regarding the IRS limit,
Please refer to CSU Pre-Tax Parking
Deduction Plan Brochure and/or appropriate CSU Technical Letter(s) for complete details.