Parking Account Administration
Under the provisions of Internal Revenue Code (IRC) Section 132(f), pre-tax parking programs allow for voluntary payroll deductions allowing employees to deduct a specified pre-tax dollar amount for work-related parking fees. Money is deducted from the employees prior to tax deductions, resulting in a reduction of taxable income. Once the employee’s pre-tax parking deduction is established, it continues without interruption until terminated or changed by the employee. These programs are often bundled together with Transit Account Administration, and referred to as Transit and Parking Account Administration.