142022 Third Party PreTax Parking Reimbursement Account Program
1/4/2022 Third Party Pre-Tax Parking Reimbursement Account Program Section 2200 of B. A. M. 1
General Program Information 1 • Regulated by Section 132(f) of the Internal Revenue Code (IRC) – “Qualified Transportation Fringe Benefits”. 1/4/2022 • Not a subsidy program. • Voluntary deduction of a specified dollar amount on a pre-tax basis from pay warrant. Current max. deduction for the 2017 tax year is $255. 00/month. 2
General Program Information 2 • State Controller’s Office (SCO) deduction code is 361 -001. 1/4/2022 • Must be for work-related parking fees. • ASI (Application Software, Inc. ) is the TPA. • No open enrollment period. No minimum deduction amount. No admin. fee. 3
3 • Only one (1) parking space per employee unless they have appointments with multiple departments in different locations or their duties require them to park in different locations. • Employee pays vendor directly to park at parking facility. 1/4/2022 General Program Information 4
General Program Information 4 authorizes SCO to deduct a matching amount from pay warrant on a pre-tax basis. 1/4/2022 • By enrolling in program, employee • Employee submits parking receipt with a claim form (Cal. HR 681) to get reimbursed for the money taken out of pay warrant. • Depending on tax bracket, savings could be in 20 -30% range. 5
Eligibility Criteria 1 • Rank and file; Managerial, Supervisory, Confidential, Excluded; Constitutional Officers; Judicial Council employees; Supreme, Appellate, and Superior Court Judges 1/4/2022 • Active state employees who may participate: 6
2 • Employee drives personal vehicle to work or to a location from which they commute to work; 1/4/2022 Eligibility Criteria • Employee pays for receipted employmentrelated parking; • Concurrent DGS/department-administered parking deduction/space not allowed. 7
3 • Eligibility begins first month after first payroll deduction (IRC requirement). • Example: if the 1 st deduction starts in the July pay period (August 1 pay warrant), the parking fees for August are the first which may be claimed for reimbursement. 1/4/2022 Eligibility Criteria 8
• Employees must complete and submit the Reimbursable Account Enrollment Form (Cal. HR 682) to their employer if they wish to enroll, change their deduction amount, or cancel from the program. SCO must receive the Cal. HR 682 by the 10 th of the month in order for the transaction to take place in the current pay period. • Once established, deduction continues without interruption until employee requests a change or cancellation. 1/4/2022 Enrollment, Changes, and Cancellations 9
• The IRS and state do not allow for retroactive transactions (enrollments, changes to deduction amount, and cancellations). Cal. HR 682’s not processed by SCO in the pay period requested become effective in the next pay period. • ASI and Cal. HR do not process the Cal. HR 682. Transactions must be processed by the employee’s Personnel Office and SCO. 1/4/2022 Retroactivity 10
1/4/2022 Cal. HR 682 Third. Party. Pre-Tax. Parking. Reimbursement. Account. Program. Enrollment. Form 11
1/4/2022 Cal. HR 682 Third. Party. Pre-Tax. Parking. Reimbursement. Account. Program. Enrollment. Formpage 2 12
• Employees must cancel from the program if they transfer from a private parking lot to a state/department-sponsored lot or vice versa. 1/4/2022 Parking Lot Transfers • Employees with multiple pre-tax parking deductions taken from their pay warrant may face forfeiture of the unclaimed Third Party Pre-Tax Parking Reimbursement Account payroll deduction(s). 13
• For Leave of Absence (LOA), the deduction will continue if there is "sufficient gross" pay. If an employee is on Industrial Disability Leave (IDL) and receiving nontaxable income, the deduction ceases. 1/4/2022 Leave of Absence 14
1 • Monthly deduction is for the next month (e. g. , July pay period deduction is for the month of Augusts' parking). 1/4/2022 Claims Process • Employee pays parking vendor and receives a receipt. • Employee completes Reimbursable Account Claim Form (Cal. HR 681)and sends vendor parking receipt(s) to ASI at the address listed on the Cal. HR 681. Cal. HR does not process the Cal. HR 681. 15
2 • Claims/receipts can be submitted after paying for parking space; there is no need to wait until end of month to submit a claim. 1/4/2022 Claims Process • ASI must receive claims/receipts by the 15 th of the month to ensure the claim is included in the current processing cycle. • ASI mails reimbursement checks or a direct deposit is made into an employee’s bank account at the end of each month. 16
1/4/2022 Cal. HR 681 Third. Party. Pre-Tax. Parking. Reimbursement. Account. Program. Claim. Form 17
• If an employee does not receive or loses their reimbursement check, the employee should contact Cal. HR for instructions on how to cancel and replace the check. 1/4/2022 Stop Payment (Lost Checks) 18
• Automatic refunds not allowed by IRC. Cal. HR reviews requests on a case-by-case basis. Examples of approved refunds: disability, death, department-caused delay in processing cancellation. 1/4/2022 Refund Requests • All approved refunds are taxable without exception. 19
• Participant determines need for refund • Participant’s department submits request, on letterhead, with the following to Cal. HR: • Participant’s full name • Participant’s SSN (or the last 4) • Pay period(s) involved • Amount per pay period • Copies of participant’s enrollment and cancellation forms (Cal. HR 682) • Reason for refund request 1/4/2022 Process for Refund Request 20
• “Active” participants & separated employees have one (1) year from the date of their last activity (payroll deduction or submission of a claim) to file a claim with valid receipts for reimbursement of qualified work-related parking expenses incurred prior to their cancellation/separation from the state. Claims submitted after the time frames specified above will result in the forfeit of any remaining balance in the account. 1/4/2022 Forfeiture of Funds 21
• www. calhr. ca. gov • In the “Services for State Employees” section click on “Check out services for state employees” • Under “Current Employees” click on “Benefits” • Click on “Pre-Tax Parking Program” 1/4/2022 Cal. HR Website Info 22
• Cal. HR: Ray Asbell, Program Manager (916) 324 -0526 1/4/2022 Contact Information Carol Azevedo, Benefits Program Manager (916) 327 -1438 • Third Party Administrator (ASI): 1 -800 -659 -3035 23
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