Kansas Department of Administration

20-P-005 Elimination of Employer Administration Fee for Pre-Tax Parking Deductions (August 7, 2019)

Informational Circular No.

20-P-005

Effective Date:

Payroll Period Ending September 21, 2019

Contact Name:
Nancy Ruoff

Ph:
(785) 296-2853

Email:
Nancy.Ruoff@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Elimination of employer paid administration fee for pre-tax parking deductions.

 

Per payroll informational circular 01-P-015 the State of Kansas established a Parking Compensation Reduction Program (PCRP) pursuant to Section 132 of the IRS code and K.S.A. 75-5535 and began offering pre-tax parking by payroll deduction in January 2001. As detailed in the circular, the savings from reduced employer FICA contributions were captured as an employer (ER) parking fee (associated with each pre-tax employee deduction) and distributed between the Department of Administration and Board of Regent institutions to offset the administrative costs of the program.

Since the initial implementation, significant changes have occurred in SOK parking and efficiencies have been gained in the payroll and administrative processes associated with the PCRP. As a result, the Department of Administration is eliminating the employer paid administrative parking fee effective with the pay period beginning September 8, 2019, ending September 21, 2019, paid on October 4, 2019.

The Office of the Chief Financial Officer, Payroll Systems Team, is responsible for making this change in the SHARP system. Regent institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above.

NTR:abe
Printable Version of 20-P-005

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