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.
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