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| Employee Tuition Waivers |
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Faculty and staff may be eligible for tuition waivers for credit courses, in accordance with
Board of Regents Policy, Chapter 6, Section 6-10. Employees must be employed on a half time basis
or more to be eligible for tuition waivers at any campus for a maximum of six credits per semester.
Spouses and domestic partners of members of bargaining unit 07, 08, 87 and 88 may also be eligible
for tuition waivers. Those seeking tuition waivers must register after the normal student registration period, during the late registration period designated for faculty and staff at the campus where the course is offered. Employees must secure the authorization from their respective supervisors for any adjustments to work schedules. The taxability of tuition waivers is governed by the Internal Revenue Code (IRC) section 117. The value of this tuition waiver may be taxable to the employee. Tuition waivers are not taxable for employees and employee spouses for education below graduate level.
Tuition waivers are not taxable for employees for education below graduate level. However, for employees enrolled in graduate level courses, tuition waivers may still be non taxable if the education helps to maintain or improve employment skills, or is required to keep the job, salary level, or the current status. If the education enables the employee to meet the minimum qualifications for a job, or qualify for a new trade or business, then the tuition waiver is taxable.
The determination of taxability of a tuition waiver for graduate level courses as described above is left to the employee since the value of the tuition waiver is not included in the employee's gross income and is not reported as wages.
Tuition waivers are not taxable for employee spouses for education below graduate level.
The value of tuition waivers afforded to domestic partners for education at any level is taxable to the University employee.
The value of the tuition waiver, if applicable, will be included in the employee's gross income and reported as wages or other compensation on the employee's W2 and is subject to employment taxes. Taxable amounts will be transmitted through the State Payroll System. These taxable amounts will increase the employee's Federal, State and FICA taxable income and will generate additional withholding assessments against gross payroll wages. These payments are not payroll payments, but serve to increase taxable income and are defined as Wages-in-Kind. The Employee's Earnings Statements and the annual W-2 Statements will therefore reflect taxable income and withholding amounts related to both payroll wages and wages-in-kind. Please consult with your tax advisor if you have further questions.
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Employee Tuition Waiver
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Employee Declaration of Marital Status or Domestic Partnership
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