|Agencies are to ensure all approved employees participating in a transit pass program and/or a qualified parking program have the correct pre and post-tax amounts deducted from each participant’s paycheck. CUNY and GOER must also ensure that the pre-tax limits identified in this bulletin are not exceeded. Employee’s whose pre-tax and post-tax deductions do not meet the IRS guidelines should be reviewed and changed as needed with authorization from the employee.
Error Messages and Instructions:
Pre-tax amount exceeds the federal pre-tax limit.
Instruction: Reduce the pre-tax amount, not to exceed the IRS guidelines of $127.50 (1/2 the monthly pre-tax limit) and notify the employee.
Pre-tax amount is less than the federal pre-tax limit and employee has a post-tax deduction.
Instruction: Review the initial paperwork to ensure deduction amounts were keyed correctly. If amounts are correct, review with employee to determine if they want to increase their pre-tax amount (within the IRS limits) and reduce their post-tax amount.
Pre-tax amount is zero and employee has a post-tax deduction.
Instruction: Review the initial paperwork to ensure the employee selected the post-tax deduction. If so, review with employee to determine if they want to increase their pre-tax amount (within the IRS limits) and reduce their post-tax amount.
GOER (Deduction Codes 421 and 422)
GOER should check every week to see if a NPAY778 report is generated. If changes are needed, GOER should notify the Payroll Deduction mailbox of all requested changes within five business days of the report date.
GOER should notify OSC of any remaining changes for each calendar year no later than the 1st of December.
CUNY (Deduction Codes 438, 439, 446 and 447)
CUNY should take the appropriate action based on the error message and corresponding instruction. Changes to the deduction amounts should be done each pay period and on-line entry in PayServ should be completed according to the Agency Submission Schedule.
CUNY should make changes in PayServ for the CUNY deductions before the 1st paycheck of December each calendar year.
The IRS has established the pre-tax limits on a monthly basis; not on a pay period basis and not on an annual basis. If an employee had insufficient pre-tax deductions one month, the difference cannot be made up in the following month. If a prior month’s pre-tax deductions were below the intended monthly deduction, the pre-tax benefit has been lost for that month and cannot be recouped.