Pre-tax Payment of Vehicle Registration Fees

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Updated: January 2006

Recent changes to the tax code of the Internal Revenue Service now allow the University to deduct vehicle registration fees from an employee's paycheck on a pre-tax basis. Employees currently enrolled in the payroll deduction program have the fees taken out of their pay after taxes have been applied. By allowing a pre-tax deduction, an employee participating in payroll deduction will have his/her taxable income reduced.

Effective January 1, 1999, all vehicle registration fees paid by payroll deduction will be deducted on a pre-tax basis. Employees will automatically be enrolled in the pre-tax program unless they notify the University in writing that they are opting out.