I. PURPOSE

This directive provides instructions for the pre-tax parking benefit program for non-bargaining unit FSIS employees. FSIS is revising this directive in its entirety to update organizational references and remove references to a specific allowable monthly benefit.

II.  CANCELLATION

FSIS Directive 4271.2, Revision 1, Pre-Tax Parking Benefit Program for Non-Bargaining Unit Employees, 4/2/12

III. BACKGROUND

A. FSIS supports programs that improve air quality, reduce traffic congestion, and encourage its employees to commute to work by methods other than single-occupancy vehicles. Employees who are contractors are not eligible to receive pre-tax parking benefits.

B. The pre-tax parking benefit program is an Internal Revenue Service (IRS) authorization that allows eligible employees to exclude certain qualified parking expenses from taxable income. There is no cost to FSIS.

C.  The pre-tax parking benefit program is available to employees who meet either of the following conditions:

1. Park at qualified parking locations (e.g., public transportation parking lots, commercial parking lots, privately owned parking lots, parking garages, parking meters, or employer-provided parking) and either use mass transportation or ride in a vanpool or carpool of two or more persons from the parking location to work; or
2. Serve as the primary driver in a vanpool or a carpool of two or more persons to commute to work.

D. Participating employees are authorized to exclude qualified parking expenses from their taxable income up to $300, the IRS set limit allowed per month (or any subsequent statutory limit), or their actual parking cost, whichever is less.

NOTE: Employees may be eligible for both commuter transit subsidy benefits and pre-tax parking benefits simultaneously.

E.  An employee’s pre-tax parking benefit becomes effective the pay period following the pay period in which Form AD-1185, USDA Pre-Tax Parking Application is processed.

F.  An employee parking on or near property used for residential purposes does not meet pre-tax parking benefit program eligibility requirements.

G.  Drivers, alternate drivers, and passengers of vanpools and carpools who receive a free Federal parking benefit are not eligible for pre-tax parking benefits.

IV. RESPONSIBILITIES

A. Pre-Tax Parking Benefit Program Coordinator (Office of Management) is to:

1. Maintain official documentation for all pre-tax parking benefit program participants;
2. Submit required information to the Human Resources Operations Division for entry into the National Finance Center (NFC) personnel payroll system; and
3. Provide participating employees, along with managers and supervisors, with technical assistance and consultative services regarding pre-tax parking, including:
4. Publicizing the benefit to employees;
   1. Answering questions regarding the pre-tax parking benefit program;
   2. Accepting Form AD-1185 from employees and reviewing the form to determine eligibility and accuracy of data; and
   3. Approving eligible Form AD-1185s.

B. Managers and supervisors are to advise participating employees of their responsibilities, rights, and benefits and consult with the Pre-Tax Parking Benefit Program Coordinator by calling 877-FSIS-HR1 (877-374-7471); Option 6; or email FSISHR1@usda.gov with the subject “Pre-Tax Parking” when there are questions about an employee’s eligibility to receive a pre-tax parking benefit.

C. Participating Employees are to:

1. Consult with the Pre-Tax Parking Benefit Program Coordinator by calling 877-FSIS-HR1 (877-374-7471); Option 6; or email FSISHR1@usda.gov with the subject “Pre-Tax Parking.”
2. Refer to the “Pre-Tax Parking Frequently Asked Questions and Answers” guidance (see Attachment);
3. Complete Form AD-1185 to certify eligibility for pre-tax parking benefits and submit it to the Work/Life Services Branch at pretaxparking@usda.gov;

NOTE: Employees are not required to provide Social Security Numbers.  If an employee chooses to enter theirs, they are to ensure the document is encrypted before submitting it via email.

4. Claim the parking facility cost (maximum authorized by law or the actual cost, whichever is less) only for commuting to or from work;
5. Submit (and update as needed) Form AD-1185 to the Pre-Tax Parking Benefit Program Coordinator immediately for either of the following reasons:
   1. An increase or decrease in parking rates raises or lowers the maximum allowable benefit to which the employee is entitled; or
   2. To cancel the pre-tax parking benefit when the employee becomes ineligible for any reason.

V. QUESTIONS

For questions about the Pre-Tax Parking Benefit Program, call 877-FSIS-HR1 (877-374-7471); Option 6; or email FSISHR1@usda.gov with the subject “Pre-Tax Parking.”

PRE-TAX PARKING FREQUENTLY ASKED QUESTIONS AND ANSWERS

Q:        Which employees are eligible for pre-tax parking?

A:        Employees who park at eligible parking locations and who also meet any of the additional qualifying criteria.

Q:        What are eligible parking locations?

A:        A metro parking lot, commercial lot, privately owned parking lot, parking garage, parking meter, or employer-provided parking.

Q:        What are the additional qualifying criteria?

A:        An employee must use mass transportation, ride in a vanpool, or ride in a carpool of two or more persons from the parking location to work.

Q:        Can an employee driving a vanpool or carpool and parking in an eligible location be authorized pre-tax parking?

A:        Yes. Example: The primary driver of a vanpool or carpool who parks in a commercial lot (or other eligible parking location), and whose members then walk to work is eligible for pre-tax parking.

Q:        Can a single occupant of a vehicle who drives to work, parks at an eligible parking location, does NOT use mass transportation, and does NOT ride in a vanpool or carpool from that location be authorized pre-tax parking?

A:        No. The intent of the program is to encourage employees to use mass transportation, a vanpool, or carpool and to discourage the use of single occupancy vehicles to travel to work.

Q:        How do employees apply for the pre-tax parking benefit program?

A:        Eligible employees should submit Form AD-1185 to pretaxparking@usda.gov. The Pre-Tax Parking Benefit Program Coordinator will submit the approved application to the servicing personnel office for entry into the NFC’s personnel/payroll system.

Q:        How can employees find out about Internal Revenue Service (IRS) guidance on record keeping and proof needed if a person is audited?

A:        FSIS cannot provide legal tax advice or address IRS implications. Employees with concerns should consult with an accountant or tax expert for guidance or visit www.irs.gov.