Pre-Tax Transit Incentives

UCSF has expanded its pre-tax savings to include non-UCSF affiliated vanpools or parking facilities.

Since March 2002, UCSF's pre-tax program has allowed employees to deduct qualified transit, vanpool and parking expenses from their paychecks on a pre-tax basis. As a result of the Transportation Equity Act for the 21st Century (TEA 21), UCSF employees who use non-UCSF controlled vanpools or park at non-UCSF controlled parking facilities can now take advantage of UCSF's pre-tax incentive programs as well.

How does the Pre-Tax Transit program work?

1. Employees must authorize a payroll deduction for qualified transit, vanpool and/or parking expenses up to a prescribed maximum:
   
   • Pre-tax parking (non-UCSF controlled parking facilities); $220 maximum monthly pre-tax parking deduction
   • Pre-tax transit & pre-tax vanpool (non-UCSF controlled vanpool) $115.00 maximum combined transit & vanpool monthly pre-tax deduction
2. Employees must authorize a post-tax deduction of $3.39 a month, which is forwarded to the University's designated pre-tax processing vendor, HR Simplified, to fund the cost of the program.
3. Employees purchase transit and/or incur vanpool and/or parking expenses as normal.
4. Employees must notify HR Simplified within 180 days of incurred transit, vanpool or parking expenses via the web, fax or U.S. Mail. Please note that employess have 90 days to claim expenses with HR Simplified after termination of employment with UCSF.
5. HR Simplified will return pre-tax payroll deducted dollars either via automatic funds transfer to a designated bank account or by check via the U.S. Mail.

UCSF employees can review their account status with HR Simplified by visiting their website, www.hrsimplified.com, at any time.

What are qualified transit, vanpool, and parking expenses?

Transit: Qualified transit expenses include only those costs incurred for commuting to and from work. Such expenses include any pass, token, voucher, or similar item that entitles a person to travel via any mass transit facility (such as train, bus, subway or ferry), provided by any person or public agency in the business of transporting persons for compensation or hire if such transportation is provided in a highway vehicle with a seating capacity of at least six adults (excluding the driver). Bridge tolls are NOT a qualified transit expense.

Vanpool: Qualified vanpool expenses include any highway vehicle for which the seating capacity is at least 6 adults (not including the driver), AND at least 80 percent of the mileage use is:

1. for purposes of transporting employees in connection with travel between their residences and their place of employment, and
2. on trips during which the number of employees transported for such purposes is at least 1/2 of the adult seating capacity of such vehicle (not including the driver).

Parking: Qualified parking expenses include parking at or near your work location or at a location from which you commute to work by carpool. Meters are included.

What are the savings?

Exact savings will depend on an employee's specific tax rate.

For example, if your annual transit cost is $600 ($50 per month) and your combined Federal and State tax bracket is 33.5%, you save $201 per year, minus the $41 vendor fee. This results in an annual net savings of $160 *.

* If you do not contribute to OASDI or DCP-Safe Harbor, your savings will be approximately 7.5% less than indicated above.

Important information

• HR Simplified returns your pre-tax payroll deducted dollars at the beginning or middle of each month, based on when you submit your request for reimbursement on line at hrsimplified.com.
• You may cancel at any time but if you have a credit balance with HR Simplified do not cancel. Reduce your monthly deduction to $25 (our minimum) and claim the maximum deduction each month. This will quicly depete your balance until you no longer have a balance. Then you can cancel.
• Refunds are not issued for unclaimed pre-tax deductions. If you terminate employment with unclaimed contributions, that money will be forfeited.
• Claimed expenses may include only qualified expenses for transit, vanpool and parking.

For a list of frequently asked questions, please visit the Pre-Tax Transit Incentives FAQs section.

Sign up

Complete the following Pre-Tax Enrollment Form and return it to UCSF Transportation Services, Box 0299, or fax it to (415) 476-0499.

Pre-Tax Enrollment Form

Contact pre-tax program vendor

Our pre-tax program vendor, HR Simplified, can facilitate sign up and answer questions via their website, www.hrsimplified.com, or by phone, 1-866-452-3700 X 1263.

Contact the UCSF Rideshare Department

Transit Incentives Index

	FAQs
	HR Simplified

FORMS & SCHEDULES
Enrollment Form
Reimbursement Claim Login
Reimbursement Schedule