Employer-Provided Benefit – Educational Assistance



Any educational assistance benefit given not governed by REG 07.55.8 for Tuition Waiver for Faculty and Staff – Procedures must be authorized in advance by the Board of Trustees (BOT) on a case-by-case basis, per POL 05.15.03 for Non-Salary and Deferred Compensation.  The Non-Salary Compensation Form must be completed, approved and submitted prior to payment.

Taxation of Payment

The value of the excess qualified educational assistance (> $5,250/year) is reported as taxable compensation included in the taxable grosses for social security, Medicare, federal, and state reporting.  Social security (OASDI) and Medicare taxes (Fed-Med) are withheld on the paycheck. Non-qualified tuition assistance exceptions approved by the BOT, are taxed at the full value.

Responsible People

Employee: The employee has no reporting responsibility

College or Department: The college or department has no reporting responsibility for assistance covered by REG 07.55.8; however, the college or department must inform University Payroll of educational assistance exceptions approved by the Board of Trustees.

University Cashier’s Office: It is the responsibility of the University Cashier’s Office to report the employees with tuition waiver amounts in excess of $5,250/year on a spreadsheet to the University Payroll.  The following information should be included:

  • Employee name
  • Employee ID number
  • Total dollar amount waived

The reporting schedule of the tuition waiver is:

  • Spring Semester – Spreadsheet due by April 30th
  • Fall Semester – Spreadsheet due by October 31st
  • Summer Semester – Spreadsheet due by August 31st

University Payroll: Based on information submitted by the University Cashier’s Office, University Payroll will add the tuition value > $5,250 as compensation using the following earnings code and withhold applicable taxes:

  • TG1 – Tuition Grad Excess