What does this mean??

[mdklatt]

"The option of payroll deduction of your permit fee continues to be available either pre-tax or post-tax."

Okay so far.

"If the pre-tax option is elected, the fee is exempt from federal and state taxes and from FICA withholding."

WTF? It's a fee, not a benefit. :confused:


"Also, once elected, this option is irreversible until the following year."

:confused: :confused: :confused:

[Widescreen]

Given that information, I don't know why anyone would choose "post-tax".

[Hamhock]

it's not be making sense to me.


what kind of permit fee is it?

[mdklatt]

it's not be making sense to me.


what kind of permit fee is it?

Parking permit. Why not just say, "the pre-tax option means the permit fee will reduce your income subject to taxes and withholding"? I seriously think somebody at Parking & Transit copied text from an HR letter, especially the part about "this option is irreversible until the following year".

[Condescending Sooner]

Actually parking can be withheld pre-tax if it is work related.

[yermom]

apparently...

it still irks me that i have to pay :mad:

[mdklatt]

Actually parking can be withheld pre-tax if it is work related.

But why say it's "exempt from federal and state taxes and from FICA withholding"? That makes it sound like a French benefit in the manner of insurance credits, which it is certainly is not.

[SCOUT]

The fact that you don't have to pay taxes on it could be considered a benefit.

You only have the option to adjust your taxable options, things like flex-spending accounts for example, once a year.

The only reason I have heard for people electing not to have it deducted pre-tax is to up their annual earnings. Social Security takes the top three earning years to calculate your benefit and they want every dollar possible included to increase the retirement benefit.

[soonerbrat]

French benefit?

LOL

[mdklatt]

The fact that you don't have to pay taxes on it could be considered a benefit.



:les: BUT IT'S MONEY I'M GIVING THEM, NOT MONEY THEY'RE GIVING ME!

[soonerbrat]

i recommend having them take it out pre tax

[SCOUT]

:les: BUT IT'S MONEY I'M GIVING THEM, NOT MONEY THEY'RE GIVING ME!

but you are paying for it with money that has not been taxed