Third Party Pre-Tax Parking Reimbursement Account Program
This is not a subsidy program. The California Department of Human Resources (CalHR) is the state's administrator for the Third Party Pre-Tax Parking Reimbursement Account Program (Program). This Program is for state employees who do not have access to state controlled/owned (DGS, CalTrans, etc.) parking spaces or a department-sponsored parking program. CalHR contracts with a third party vendor, Application Software, Inc. (ASI) for record keeping and claims adjudication.
The Third Party Pre-Tax Parking Reimbursement Account Program (Program) is a voluntary payroll deduction program that allows you to deduct a specific dollar amount for work-related parking fees from your pay warrant prior to tax deductions; this reduces your taxable income. The funds taken out of your pay warrant go into a special reimbursement account that you will claim against. To receive payments from your account, you must submit a reimbursement claim form (CalHR 681) along with the required parking receipts.
Once the deduction begins for the Program it will continue without interruption until you stop or change it.
At the end of the tax year, the State Controllers Office (SCO ) will report your taxable income as usual, excluding the amount of the pre-tax parking deduction from your gross taxable income. For the 2014 tax year, you can deduct your actual cost of parking, up to $250 per month.
Section 132(f) of the Internal Revenue Code (IRC) - Qualified Transportation Fringe Benefits, regulates the Program.
The IRC defines "qualified parking" as:
Parking on or near the employer's business premise or at a location from which the employee commutes to work by carpool, commuter highway vehicle, mass transit facilities, transportation provided by any person in the business of transporting persons for compensation or hire, or by any other means.
Unless you meet certain specific criteria, the IRC does not allow for automatic refunds of excess money in your Program Account. Please read the "Frequently Asked Questions" and the "Forfeiture Information" below.
If you are an active State employee, you have one (1) year from the date of your last activity (deduction or submission of a claim) in which to submit a claim with valid parking receipts for reimbursement. Claims must reflect costs incurred while you were an active participant in the Program. Costs incurred after your last date of eligibility are not eligible for reimbursement.
If you separate from State service, you also have one (1) year from your date of separation in which to submit a claim for reimbursement of work-related parking expenses incurred prior to your separation. Claims must reflect costs incurred while you were an active participant in the Program. Costs incurred after your last date of eligibility will not be processed.