Tax Law Changes Impact Parking, Bus Passes, and Vanpool

As a result of federal tax reform provisions recently signed into law, UW System has required UW institutions, including UW–Madison, to change pre-tax payroll deductions for parking, vanpool, and bus passes to post-tax deductions. This change in the tax deduction amount will appear on the June 1, 2018 paycheck for employees who are paid monthly and on the June 7, 2018 paycheck for those who are paid biweekly. The net cost increase will vary depending on the employee’s parking permit or vanpool cost and the employee’s income level. Also as a result of the most recent federal tax code overhaul, bus passes for UW–Madison employees will cost $48 per year in 2018–2019, compared to the current $36 per year. UW–Madison will continue to subsidize employee bus passes as a low-cost option for commuting to work.

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