Pre-Tax Parking Deduction Plan

The SMU Pre-Tax Parking Deduction Plan allows eligible SMU employees to pay for qualified parking expenses with pre-tax dollars as permitted by Section 132(f) of the Internal Revenue Service Code, “Qualified Transportation Fringe Benefits. This pre-tax benefit is available only through payroll deduction for qualified parking as defined by the IRS and established by SMU (e.g., SMU owned, leased or contracted parking facility).

If you are eligible, participation in the plan is automatic unless you choose otherwise. Deductions are made from your pay before federal, Social Security and Medicare taxes are calculated. Your taxable income is reduced, and consequently, your taxable income reflected on your annual W-2 statement is reduced.

Eligibility

• Any non-student employee of SMU who uses SMU parking and pays for it through payroll deductions is eligible to participate in this plan.
• In addition to being a non-student employee, individuals must be benefits eligible to be on payroll deduction.
• Adjunct Faculty are not eligible for payroll deduction. 

Enrollment

• All current eligible SMU employees will be automatically enrolled in the Plan unless they elect not to participate. 
• New employees who are eligible will be automatically enrolled in the plan unless they elect not to participate and participation will be effective immediately upon authorization of a payroll withholding for parking. Participation will continue from pay period to pay period until the employee elects to terminate participation, ceases to be an eligible employee or separates from SMU employment.
• If you choose not to participate in the plan when hired or at any time after enrolled, you must complete and submit a Pre-Tax Parking Deduction Election Authorization Form to cancel the enrollment and pay for parking separately. 

Election Changes

You may change your election to participate in the plan at any time. All changes must be prospective. If you decide to discontinue or resume participation, you must complete and submit an updated Pre-Tax Parking Deduction Election Authorization Form. The change will become effective on the first of the month following your change in election subject to processing timelines established by the SMU Payroll Office.

Eligible Expenses

The IRS limits qualified parking expenses to parking at or near your work location or at a location from which you commute to work by carpool. The plan allows a pre-tax benefit only for qualified parking paid to SMU by you through payroll deduction. Any payment made other than by payroll deduction may not be processed on a pre-tax basis.

Plan Administration

SMU is the administrator of the plan and as such has total and complete discretionary authority to determine conclusively for all parties all questions arising in the administration of the plan. Southern Methodist University reserves the right to amend or terminate the plan at any time. All inquires concerning the plan may be directed to the Parking and ID Card Services Office.