Third Party Pre-Tax Parking Reimbursement Account Program

This is not a subsidy program. The California Department of Human Resources (CalHR) administers the Third Party Pre-Tax Parking Reimbursement Account Program (Program). CalHR contracts with a third-party vendor, Application Software, Inc. (ASI) for recordkeeping and claims adjudication.

General Information

You may participate in this program if you are a state employee who does not have access to state-controlled or owned (DGS, Caltrans, etc.) parking spaces or a department-sponsored parking program.

The Third Party Pre-Tax Parking Reimbursement Account Program is a voluntary payroll deduction program that allows you to deduct a specific dollar amount for work-related parking fees from your pay warrant prior to tax deductions; this reduces your taxable income. The funds taken out of your pay warrant go into a special reimbursement account that you will claim against. To receive payments from your account, you must submit a reimbursement claim form (CalHR 681) along with the required parking receipts. To enroll in this program you must submit the account enrollment form (CalHR 682).

Once the deduction begins for the Program it will continue without interruption until you stop or change it.

At the end of the tax year, the State Controller’s Office (SCO) will report your taxable income as usual, excluding the amount of the pre-tax parking deduction from your gross taxable income. For the 2024 tax year, you can deduct your actual cost of parking, up to $315 per month.

The Program is governed by section 132(f) of the Internal Revenue Code – Qualified Transportation Fringe Benefits.

The Internal Revenue Code defines “qualified parking” as:

Parking on or near the employer’s business premise or at a location from which the employee commutes to work by carpool, commuter highway vehicle, mass transit facilities, transportation provided by any person in the business of transporting persons for compensation or hire, or by any other means.

Unless you meet certain specific criteria, the Internal Revenue Code does not allow for automatic refunds of excess money in your Program Account. Please read the Frequently Asked Questions and Forfeiture Information below.

For questions concerning the status of a claim or your account balance, please contact the third party vendor Application Software, Inc. (ASI) at (800) 659-3035 or visit the ASI website.

For more information on this program or eligibility, please contact your department’s personnel office.

Eligibility

The following active state employees who meet the eligibility criteria can participate in the Third-Party Pre-Tax Parking Reimbursement Account Program:

Rank and file

Managerial

Supervisory

Confidential

Excluded (including: Constitutional Officers; employees of the Judicial Council; and Supreme, Appellate, and Superior Court Judges)

Eligibility criteria are:

You drive a personal vehicle to work or to a location from which you commute to work
You pay for employment related parking in a paid facility and receive a receipt
You currently do not have a DGS or department administered parking space

Unless you have appointments with more than one department in different locations or your duties require you to park in different locations, you are limited to one parking space. Your eligibility begins the first month following your first payroll deduction (IRC requirement).

For example:

If your Pre-Tax Parking deduction takes place in the July pay period (pay warrant has an issue date of August 1), then you may submit the parking fees associated with the month of August. In this example, these are the first fees that are eligible for reimbursement.

Enrollment, Changes to Enrollment, and Cancellations

Enrollment

To enroll, please complete the CalHR 682 – Reimbursable Account Enrollment Form and submit it to your departmental personnel office.

Your deduction will start in the current pay period if the State Controller’s Offices’ Miscellaneous Deduction Unit receives your form by the 10th of the month.

The program does not allow retroactive pre-tax parking deductions.

If deductions are not taken beginning in the pay period you requested, they will start in the next possible pay period following the processing of your form.

Changes to Enrollment

You may increase or decrease your pre-tax parking payroll deduction at any time by completing the CalHR 682 – Reimbursable Account Enrollment Form and submitting it to your departmental personnel office.
Changes start in the current pay period if the Miscellaneous Deduction Unit at the State Controller’s Office receives the form by the 10th of the month.
The program does not allow retroactive pre-tax parking deductions.
If your changes not take effect in the pay period you requested, they will start in the next possible pay period following the processing of your form.

Cancellations

You may cancel your pre-tax deduction at any time by completing the CalHR 682 – Reimbursable Account Enrollment Form and submitting it to your departmental personnel office.

Your deduction will stop with the current pay period if the State Controller’s Offices’ Miscellaneous Deduction Unit receives your form by the 10th of the month.

The program does not allow retroactive pre-tax parking cancellations.

If deductions are not cancelled in the pay period you requested, they will stop in the next possible pay period following the processing of your form.

If funds remain in your Pre-Tax Parking Reimbursement Account and you are still an active State employee, you have one year from your last activity (deduction or claim) in which to submit claims for reimbursement of work-related parking. Claims must reflect costs incurred while you were an active participant in the Program. Costs incurred after your last date of eligibility are not eligible for reimbursement. You will forfeit any funds remaining in your account after these time frames expire.

If you are separating from State service and funds remain in your Pre-Tax Parking Reimbursement Account, you have one year from your date of separation in which to submit a claim for reimbursement of work-related parking expenses incurred prior to your separation. Claims must reflect costs incurred while you were an active participant in the Program. Costs incurred after your last date of eligibility are not eligible for reimbursement. You will forfeit any funds remaining in your account after these time frames expire.

Parking Lot Transfers

This Program differs from the Department of General Services or department-sponsored parking program in the way that they are coded and processed. You must cancel your reimbursement account deduction when you transfer from a private parking lot to a Department of General Services or department-sponsored lot. Otherwise, you will have duplicate pre-tax parking deductions taken from your paycheck and could face forfeiture of unclaimed funds in your pre-tax parking reimbursement account.

Claims Process

For participants in the Program, the process for submitting reimbursement claims is as follows:

The authorized pre-tax parking account deduction from your pay warrant occurs every month.

The deduction for each pay period is can be used to reimburse parking fees incurred in the following month or later (e.g., the deduction taken in the July pay period can be used for parking fees incurred in August).

Pay your parking fees and receive a receipt for all qualified parking expenditures for the month.

Complete the CalHR 681 – Reimbursable Account Claim Form.

Your signature on the claim form certifies that the reimbursement requested is for qualified parking and that you meet the eligibility criteria.
Forward the completed CalHR 681 – Reimbursable Account Claim Form, along with the required payment documentation, to Application Software Inc. (ASI). You may submit the documentation via fax, mail, or through your online ASI account. ASI must receive your claim by the 15th of the month in order for it to be included in that month’s processing cycle.
The State Controller’s Office typically mails out the pre-tax parking reimbursement warrants once a month towards the end of the month. You may submit your claim as soon as you pay your parking fees. You do not have to wait until the end of each month.

Other Pre-Tax Parking Programs

The State of California offers two other types of pre-tax parking payroll deductions.

State-owned Parking Facilities (Department of General Services, CalTrans, etc.)

This pre-tax parking payroll deduction program is available to any state employee who has or can acquire a parking space in a state-owned garage or parking lot managed by the state.

The State Controller’s Office deducts the parking fees from your check and remits them directly to the state department.
Contact your department’s parking coordinator for more information.

Department-Sponsored Parking

Departments that have “in-house” parking programs administer their own programs. State Controller’s Office deducts the parking fees pre-tax from your check and transfers them to the department who then pays your parking fees.

Contact your department’s parking coordinator for more information.

Related Forms

Forfeiture Information

If you are an active state employee, you have one year from the date of your last activity (deduction or submission of a claim) to submit a claim for reimbursement. Claims must reflect costs incurred while you were an active participant in the Program and include valid parking receipts. Costs incurred after your last date of eligibility are not eligible for reimbursement.

If you separate from state service, you have one year from your date of separation in which to submit a claim for reimbursement of work-related parking expenses incurred prior to your separation. Claims must reflect costs incurred while you were an active participant in the Program. Costs incurred after your last date of eligibility will not be processed.

If you do not submit valid Program reimbursement claims within these specified time periods, you will forfeit the remaining balance in your account.

Contact Information

For more information or questions about the Program, please contact the Program Coordinator.

For questions concerning the status of a claim or your account balance, please contact ASI at (800) 659-3035.

Frequently Asked Questions

How do I know if I am eligible to participate in the Third Party Pre-Tax Parking Reimbursement Account Program?

Any active state employee who meets the following eligibility criteria can enroll:

You drive a personal vehicle to work or to a location from which you commute to work;
You pay for employment-related parking in a paid facility providing a receipt
You currently do not have a state-administered or department-sponsored parking space.

When can I enroll?

There is no open enrollment period for the Program; you may enroll at any time.

How do I enroll?

Complete a CalHR 682 – Account Enrollment Form and give it to your departmental personnel office. For your deduction to be effective for the current pay period, your enrollment form must be processed and forwarded to the State Controller’s Office (SCO) Miscellaneous Deduction Unit by the 10th of the month.

What is the maximum deduction allowed from my paycheck?

You can deduct your actual cost of parking, up to $315 per month, for the 2024 tax year.

What is the minimum deduction from my paycheck required to remain enrolled in the Program?

You can deduct a minimum of $1 per month to remain enrolled in the Program.

Is there a cost to enroll in the Program?

No. Participants in the Program are not charged an administrative fee.

How do I get reimbursed?

Pay your parking fees to your parking vendor and receive a receipt for all parking expenditures for the month.
Complete a CalHR 681 – Account Claim Form. Your signature on the claim form attests that the reimbursement is for “qualified parking” and that you meet the eligibility criteria.
Submit the completed CalHR 681 – Account Claim Form along with the required payment documentation to the third party administrator, ASI, via fax, mail, or your online ASI account.

How often can I submit a claim form?

You can submit a claim as often as you like. Reimbursement claims can be submitted monthly or on a less frequent basis. The reimbursement checks are mailed once a month at the end of the month. Your claim must be received by ASI by the 15th of the month to be included in the monthly processing cycle.

What information needs to be included on my parking fee receipt?

The following information should be legible on the parking fee receipt:

The name of the parking facility or company
The parking date(s) (e.g., Jan. 1-31, 2024)
The parking fee amount
Your name

What if my parking facility does not provide a receipt when I pay my parking fees?

You can submit other proof of parking fee payment with your CalHR 681 – Account Claim Form. It must include the required information listed in the question above. This documentation can be any of the following:

Copy of money order
Copy of cashier’s check
Copy of the front and back of a cancelled personal check
Copy of an invoice and the front of a personal check
Copy of the front of a personal check on which the parking facility has signed and dated as paid
Copy of credit card statement
Copy of bank statement
Proof of purchase of a debit card for parking meters

A copy of your paycheck statement showing the Program deduction is not proof of payment for reimbursement. If you still have questions about acceptable proof of parking payment, please contact ASI at (800) 659-3035.

Can I change my payroll deduction at any time?

Yes. You can increase or decrease the amount of your payroll deduction at any time by completing a CalHR 682 – Account Enrollment Form and submitting it to your departmental personnel office. The change to your payroll deduction will start with the current pay period if your form is received and processed by SCO’s Miscellaneous Deduction Unit by the 10th of the month.

Can I cancel my payroll deduction at any time?

Yes. You can cancel your parking payroll deduction at any time by completing a CalHR 682 – Account Enrollment Form and submitting it to your departmental personnel office. Your payroll deduction will be cancelled in the current pay period if your form is received and processed by SCO’s Miscellaneous Deduction Unit by the 10th of the month.

Whom do I contact to determine the status of a claim?

If you want to know the status of a recently submitted claim, login into your online ASI account or call ASI at (800) 659-3035 to speak with a customer service representative.

Whom do I contact if my reimbursement check is lost or stolen?

If you think your reimbursement check is lost or stolen, please contact the Program Coordinator at Pre-TaxParking@calhr.ca.gov.

Will my payroll deduction continue when I transfer from one department to another department?

Yes. Your payroll deduction continues when you transfer from one department to another. If you do not have to pay for parking at your new department or it has its own parking program, you need to cancel your payroll deduction as soon as possible. Complete the CalHR 682 – Account Enrollment Form and submit it to your departmental personnel office so they can process and forward it to SCO’s Miscellaneous Deduction Unit by the 10th of the month.

Do I need to cancel my payroll deduction when I move to a parking lot administered by a state department?

Yes. The Program’s payroll deduction differs from the state-administered/owned or state-sponsored parking programs in the way they are coded and processed. If you don’t cancel your payroll deduction as soon as possible when you move from a private parking lot to a state-administered/owned or state-sponsored lot, you will have duplicate pre-tax parking deductions taken from your paycheck and could face forfeiture of your unclaimed Program account funds.

If I stop participating in the Program and I have money left in my account, can I regain access to the money in the future?

If you are an active state employee, you must reenroll within one year from the date of cancellation to regain access to the money left in your account.

If I stop participating in the Program and I have money left in my account, will it be automatically refunded to me?

No. The Internal Revenue Code (IRC) doesn’t allow for the automatic refunds of unused funds in your account except for certain circumstances.

If you are separating from state service, you have one year from your date of separation in which to submit a claim for reimbursement of work-related parking expenses incurred prior to your separation. Claims must reflect costs incurred while you were an active participant in the Program. Costs incurred after your last date of eligibility are not eligible for reimbursement.

If you don’t submit valid claims within these specified time periods, you will forfeit the remaining balance in your account.

Are there any circumstances in which I can receive a refund of money left in my Program account?

CalHR reviews refund requests on a case-by-case basis.

Refund requests are not permitted for current participants in the program or for participants who have a pending reimbursement claim on file.

There are certain circumstances when you may be eligible for a refund. For example, if you become disabled or there is a delay in processing your cancellation notice, you may be eligible for a refund.

If you are eligible for a refund, it is issued to you either by check or direct deposit. Refunds are not included in your regular paycheck. Since the deduction is done pre-tax, SCO is required to withhold taxes if you are issued a refund.

If I go on a leave of absence (LOA), will my Program payroll deduction continue?

If you go on a LOA, the payroll deduction will continue if there are “sufficient funds” in your paycheck. If you are on an Industrial Disability Leave and receiving non-taxable income, your pre-tax parking deduction will cease.

Since your Program payroll deduction can be cancelled and started at any time, your deduction should be cancelled when you are on a LOA of 30 days or more.