Education Benefits for Staff: Self

For Self

¹ Staff members under Collective Bargaining Agreements are governed according to the terms of the Agreements.

Note: A form is not required to process the education benefit for yourself. For those who meet the eligibility requirements, the education benefit is applied automatically to the student's account.

Effective Date for Education Benefits

The education benefit is available after the staff member has completed their provisional period. If the provisional period is not completed by the date below, the benefit will begin the first term after the provisional period has ended.

If a staff member has completed their first provisional period but is assigned a new provisional period as result of position transfer, their eligibility will continue unchanged.

Undergraduate-Level Courses

The education benefit covers undergraduate tuition for the allowable number of credits, except for the portion per credit that is the responsibility of the staff member. This portion is stated below:

If the student will be studying abroad or participating in a co-op program, please notify the Benefits Department to ensure the benefit processes on these tuition charges.

*The undergraduate education benefit for part-time staff is calculated by multiplying the number of credits in which the staff member is enrolled (up to 8 credits) by the percent (%) effort of the staff member.

For example, you enroll in 4 credits of courses for the fall term and work at 50% effort. The education benefit is calculated at: 4 x 50% = 2 credits. The University contribution is 97% of 2 credits.

Graduate-Level Courses

The education benefit covers graduate tuition for the allowable number of credits, except for the portion per credit that is the responsibility of the staff member. This portion is stated below.

Under IRS tax code, the value of certain educational benefits applied to graduate-level courses is considered taxable income. This requires University staff members to pay taxes on a portion of the educational benefit they receive for graduate-level courses over a certain value. For University employees, the first $5,250.00 (in a calendar year) is awarded on a pre-tax basis because the University has an IRC §127 Tuition Benefit Plan in effect. After this amount is met, the withholding regarding this benefit is at a rate of 29.65% (rate effective as of January 1, 2020). The taxation can affect the amount of the University's contribution that gets applied to the student bill.

If the student will be studying abroad or participating in a co-op program, please notify the Benefits Department to ensure the benefit processes on these tuition charges.

*The graduate education benefit for part-time staff is calculated by multiplying the number of credits in which the staff member is enrolled (up to 6 credits) by the percent (%) effort of the staff member.

For example, you enroll in 3 credits of courses for the fall term and work at 50% effort. The education benefit is calculated at: 3 x 50% = 1.5 credits. The University contribution is 90% of 1.5 credits.

Taxation of Graduate Level Courses

The IRS allows employers to provide $5,250.00 to their employees for graduate-level classes each calendar year before requiring that any exceeding amount be reported as taxable income. Once taxes are applied, the University reduces the upfront benefit received by 29.65% (rate effective as of January 1, 2020).

Utilizing the Education Benefit

For those who meet the eligibility requirements, the education benefit is applied automatically to the student's account. No forms are required.

General Provisions and Policies

The education benefit is applied to tuition only and remains on your account irrespective of the grade received. All other charges and fees are the responsibility of the employee. Any error in the distributed amount of the education benefit will result in the recalculation of the benefit. Education benefits are administered by the Benefits Department. Faculty education benefits are governed by University Policies AC 21, AC 20, and AC 69. It is recommended that you review the University Policies for your position type prior to applying for the education benefit.