A-Z Index Forms Contact Us
UHRSskip navigation
BenefitsCompensation ProgramsEmployee RelationsEmploymentHR SystemsOrg DevelopmentPoliciesWorkers' Comp
Indiana University

University Human Resources

Home > Benefits > Pre-tax Commuting Expense Plan

Pre-tax Commuting Expense Plan

On this page: Plan Provisions | Eligiblility | Plan Contributions | Enrollment

Internal Revenue Code (Section 132) allows employees to pay for certain commuting expenses on a pre-tax basis (commuting expenses are treated as a "business expense" when an employee elects such in lieu of compensation -- a salary reduction).

It is important to note that this benefit is not a part of the Tax Saver Benefit (TSB) Plan.

Plan Provisions

Pre-Tax Parking Expenses

The Plan allows an employee to exclude from gross income up to $255** (2016) per month for "qualified parking" (defined as parking provided to an employee on or near the business premises of the employer). Indiana University will provide the benefit directly for the purchase of IU parking stickers on a salary reduction basis through the payroll system. This qualified parking allowance is voluntary -- any employee who does not wish to take advantage of this benefit may pay parking fees directly to campus Parking Operations.

Pre-tax Mass Transit and Commuter Highway Vehicle* Expenses

The Plan allows for qualified mass transit expense up to $130** per month combined for bus, train, or commuter highway vehicle, expenses that take the employee to and from work. Upon submission of qualified receipts for mass transit expenses, a pre-tax credit through the University's payroll system will be prepared. Employees save on payroll and income taxes on the amount of the benefit they purchase, since that amount is no longer treated or reported as taxable salary.

*A commuter highway vehicle is any highway vehicle that seats at least 6 adults (not including the driver) and is reasonably expected that at least 80% of the vehicle mileage will be for transporting employees between their homes and work place with employees occupying at least one-half the vehicle's seats (not including the driver's).

**This figure is subject to IRS regulation and may change each year.


All Indiana University employees with a regular salary payment may elect to participate in the Plan, excluding those with student status.

Plan Contributions

Indiana University covers the administrative costs of the Pre-Tax Commuting Expense Plan.


Enrollment in the Pre-Tax Parking Expense provision is handled through campus Parking Operations. Those wishing to participate will be required to sign and return a Salary Reduction Agreement for parking sticker payments through the payroll system.

The claim form can be accessed by the link on the top right of this page. Submission instructions are on the form.


HR at IU South Bend

Page updated: 10 November 2015
Contact Benefits:

Indiana University is an equal employment and affirmative action employer and a provider of ADA services. All qualified applicants will receive consideration for employment without regard to age, ethnicity, color, race, religion, sex, sexual orientation or identity, marital status, national origin, disability status or protected veteran status. Indiana University does not discriminate on the basis of sex in its educational programs and activities, including employment and admission, as required by Title IX. Questions or complaints regarding Title IX may be referred to the U.S. Department of Education Office for Civil Rights or the university Title IX Coordinator. See Indiana University’s Notice of Non-Discrimination here which includes contact information.

The Annual Security Reports, containing policy statements and crime statistics for Indiana University campuses, are available through Public Safety and the IU Police Department web sites at protect.iu.edu/police-safety/annual-reports/index.html. A paper copy will be provided upon request from Public Safety at .