Paylocity Paycheck Explainer

1. A pretax deduction – money set aside from your earnings to cover your bus, subway, train, or parking costs.
2. A matching reimbursement – only if you paid with your own card (not the Alice Card). This puts the same amount right back into your take-home pay—tax-free.

Here's what that will look like on your paycheck if your employer is using Paylocity.

Using your own card

• This employee's total pay for this pay period was $1,205.75 before taxes.
• After taxes, they took home $850.13.
• Because they spent $65.34 on parking with their own card, Alice ran a matching $65.34 reimbursement (which Paylocity here calls an "Addn" and shows as negative) and $65.34 deduction. Comparing the values in blue, you can see their Fed Taxable Income is exactly $65.34 less than their Gross Earnings.
• Because the reimbursement is untaxed, the employee gets to take home all of that $65.34 with no taxes.
• Without Alice, this employee's take-home pay would have been about $830
• By using Alice, this employee increased their take-home pay by about $20.

Using an Alice Card

• This employee's total pay for this pay period was $1,205.75 before taxes, same as above.
• After taxes and the Alice deduction, they took home $784.79.
• Because they spent $65.34 on parking with their Alice Card, Alice ran a $65.34 deduction to cover that purchase. There was no additional reimbursement, since they were already reimbursed when they tapped or swiped and didn't have to pay out of their pocket at that time.
• So their take-home pay appears lower, but they still saved about $20 by not having to pay any taxes on the $65.34 they used to pay for parking at work.
• In the end, the result is the same as using your personal card: you don't pay any government taxes on your commuting expenses, and end up keeping more of your earnings for yourself.