Recent News: Parking Taxable Benefit Update

Recent News: Parking Taxable Benefit Update

On May 27^th BCIT sent out an all staff email regarding changes to the way staff parking rates are assessed for tax purposes. This is the first reassessment of the parking benefit since 2009 and we continue to be assessed at the bottom for comparable rates in the vicinity.

Because of the reassessment, members will see a small increase in the tax assessed for this benefit. The increases have been partially offset by being prorated for vacation.  Because parking is not a benefit when staff are on vacation, the tax is being reduced by the vacation entitlement for each of the employee groups.  The assessed rates are different for different employee groups because the vacation entitlement differs for each of these groups.  If they didn’t do it this way, everyone would pay a bit more.

The FSA raised a concern that it was wrong for employees who are paid less to have a higher assessed benefit for parking.  We also agreed that it was better for everyone to pay a little less despite the perceived unfairness.  We have, after all, negotiated differing vacation entitlements as well.  Rather than have everybody pay more tax on the parking benefit, we agreed to let the apparent inequity stand.

If you still have questions after reading the post from BCIT please do not hesitate to contact the FSA.