The federal Tax Cuts and Jobs Act, which Congress passed and President Trump signed into law in December 2017, imposes new taxes on non-profit organizations that provide transportation benefits. As a result, parking and transit fees will continue to be deducted; however, these fees will now be after-tax deductions starting January 2019. This change means your taxable income will increase by the amount of your parking and transit fees. The increase in tax withheld will vary based on your tax bracket, Form W-4 information, and amounts paid for these benefits. Your current Form W-4 can be viewed and/or updated on the System Human Resource Services website.
These changes will be reflected in pay events starting as follows:
- Biweekly: January 9, 2019
- Monthly: January 16, 2019
For additional information, see FAQs below and on the OBFS website.
Contact
If you have questions regarding your specific parking and transit payroll deduction amount, please contact your campus Parking Office:
- Urbana: 217-333-3530
- Chicago: 312-413-5800
- Springfield: 217-206-8502
While the University of Illinois System cannot provide tax advice to employees, University Payroll & Benefits Customer Service Center can assist with questions regarding the impact of this change on your tax withholding:
Frequently Asked Questions
What is changing?
Pre-tax parking and transit benefits will be changed to post-tax benefits starting January 2019. As a result, employees paying for these benefits with payroll deduction will see an increase in taxes withheld from their paychecks.
Which parking and transit benefits are impacted by this change?
All pre-tax parking and transit benefits offered by the University of Illinois System and paid via payroll deduction are impacted by this change.
Why is the tax treatment changing?
The changes are associated with the federal Tax Cuts and Jobs Act passed by Congress on December 22, 2017.
How can I determine the amount I’m currently paying for parking and/or transit benefits?
All payroll deductions, including parking and transit benefits paid via payroll deduction, are summarized on your earnings statement accessible here: https://www.obfs.uillinois.edu/payroll/earnings-statements/
Will my paycheck be affected by this change?
Those employees currently receiving pre-tax parking or transit benefits using payroll deduction will see a reduction in net pay starting in January 2019 because of the required additional tax withholdings.
Will this change affect my 2018 individual income taxes?
This change has no impact on your 2018 individual income tax liability.
