Pre-Tax Parking Reimbursement Account

State and Federal tax laws allow employees of the employer to avoid paying taxes on expenses incurred while parking at work. Employees save by setting up a pretax payroll deduction that reduces taxable income. Qualified expenses are exempt from Federal, State and FICA (Social Security and Medicare) taxes. Your tax savings will vary, depending on your deduction amount and your tax bracket. Most employees will save approximately $12.50 on every $50 they pay for qualified expenses (25%).

The advantage is that you're spending pre-tax dollars, so you end up paying fewer taxes on your salary and having more money to spend.

Check out the FAQs under the Resources Tab for Frequently Asked Questions relating to Pre-Tax Parking.

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