[November 16, 2001 ]

Tax law changes will make it possible in 2002 for you to pay on a pretax basis by payroll deduction for up to $100 a month for transit passes and vanpooling expenses, separately or combined. The current 2001 monthly limit on pretax payroll deductions for transit passes and vanpooling is $65. The new $100 limit will be effective as of payroll checks dated January 1, 2002 and later.

The $100 pretax deduction limit for these expenses will apply to federal income taxes and FICA taxes. There is no pretax deduction limit on transit pass and vanpool expenses for state income tax withholding.

The monthly pretax deduction limit for parking will remain at $180, applicable to federal income taxes and FICA taxes. State law does not permit pretax parking deductions with respect to state income tax withholding.

For further information and assistance, contact your local Parking/Transportation office or the Human Resources office.

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