|
|
|
|
||
Pre-Tax Vanpool Program
The State of Wisconsin, Department of Administration (DOA) administers a vanpool program. The Internal Revenue Code allows the University to offer payroll deduction for this program on a pre-tax basis. Under this program if you sign up for payroll deduction for vanpool the amount of the deduction will not be included in your gross income for the computation of Federal or State income taxes or Social Security taxes. The amounts will not be included as taxable income on your W-2 form. Employees interested in vanpool information should contact the van coordinator from their home city. A list is available on the DOA website at: http://www.doa.state.wi.us/vanpool/index.asp Vanpool deductions are deducted from each payroll period. If you do not want pre-tax deductions you must complete a Waiver of Pre-Tax Treatment Form (UW1079). The waiver form is available at: http://www.bussvc.wisc.edu/ecbs/pay-uw1079-pretax-waiver.pdf There is an IRS limit on vanpool expense. For the year 2008, an employee may exclude from income up to $115 per month. Vanpool expenses that exceed this limit will automatically be taken on a post-tax basis, meaning that a portion of the combined deductions will be subject to Federal and State income taxes and Social Security taxes. If you cancel participation and money has already been deducted for vanpool, there are no refunds. The Internal Revenue Code prohibits participant refunds. Refunds will be issued if vanpool participation is cancelled during the year and you had signed a Waiver, or if you paid by check or credit card. The amount of refund depends on the timing of the cancellation. The pre-tax transportation deductions could have an effect on your social security benefit since your earnings reported for social security purposes will be lower. In most cases there is no effect on your social security benefits because your social security earnings used to compute your benefits is an average of the earnings over your working career. There is NO EFFECT on your earnings reported to the Wisconsin Retirement System or on the computation of any other benefits such as sick leave conversion credits, income continuation insurance, life insurance, unemployment or workers compensation benefits. UW1356 10/08 |
|
File last updated: October
23, 2008 |
