Deductions for parking fees, vanpool and bus passes changing to pre-tax
Effective in January, payroll deductions for parking fees, vanpool, and bus passes will change from a post-tax deduction to a pre-tax deduction for UW–Madison employees. This is a result of federal law H.R. 1865 (“The Further Consolidated Appropriations Act 2020”), signed into law on Dec. 20. 2019.
Employees who are paid monthly will see the pre-tax deduction on their paycheck dated Jan. 31 for the pay period of Jan. 1–Jan. 31. Those who are paid biweekly will see the pre-tax deduction on their paycheck dated Jan. 30 for the pay period of Jan. 5–Jan. 18.
UW System is working with the Department of Employee Trust Funds (ETF) on approval and possible re-implementation of the Parking & Transit Accounts for employees. These accounts would be administered by ConnectYourCare (CYC), the current third-party administrator for Flexible Spending Accounts (FSA), Medical and Dependent Care, and Health Savings Accounts (HSA). Information on this account option will be shared with employees as it becomes available.
Employees with questions should speak with their divisional or departmental human resources contact.