Conditions and Taxability of Tuition Waiver:
Tuition Waiver Benefit
After one year of employment, full-time employees and their eligible dependents are eligible to take advantage of attendance at most Saint Mary’s College courses, with reduced or fully-waived tuition, subject to certain limitations summarized in this section, and described more fully in the Tuition Waiver Policy available in Human Resources and on the HR website.
Requirements and Limitations
A partial list of tuition waiver requirements and limitations applicable to employee, spouse and children of employees includes:
- Employees must have completed one (1) year of full-time employment with the College to be eligible for tuition waiver for themselves, spouses or eligible (dependent) children. Eligible children must begin their program prior to attaining age 25.
- An applicant for tuition waiver must meet the normal application and admissions requirements of the College and of the academic program for which application is being made.
- Courses not eligible for tuition waiver include inter-institutional or contract programs (for example weekend courses offered by the Center for Leadership), courses in doctoral programs, and course work at other institutions.
- Tuition waiver for any one student, including employees and their dependents, and near relatives of Christian Brothers, may be received for a maximum of four (4) academic years and may be applied only to courses undertaken in a single degree or certificate program.
- Application for a waiver shall be made to Human Resources at the time of application for admission to the College is made. Renewal applications shall be made to Human Resources on or before the deadline set by Human Resources for such applications, and prior to each term for which a tuition waiver is requested.
- This plan may be revoked or modified by the Board of Trustees of the College, effective for current or future participants and commencing with the academic year immediately following the date of such revocation or modification.
- The tuition waiver is for tuition only and will not waive course fees (for lab materials, travel, in progress course fees, etc.), mandatory fees or any food and housing fees.
Taxability of Graduate Tuition Waiver Benefit
Employees taking courses: Tuition waivers received by employees who are taking courses in a graduate program are deemed taxable under IRS Section #117. There is a $5,250 exemption applicable for employees to reduce this taxable amount. Any employee receiving more than $5,250 in tuition waivers during any CALENDAR year, will receive a notice from the payroll department stating the taxable amount. Any taxable amount will be included in the employee’s wages during July and December, following notice being given to the employee in June and November. This added benefit will cause additional income taxes as well as FICA, Medicare and SDI to come out of the paycheck containing the taxable benefit. Remember that the $5,250 is an annual exemption and therefore, if you pass the threshold at the July reporting period, all subsequent tuition waivers will be taxable.
Spouses or Children taking courses: Tuition waivers received by non-employees who are taking courses in a graduate program are deemed fully taxable under IRS Section #117. There is no exemption applicable for spouses and children. The taxable benefit is considered to be received by the employee and therefore will be added to their taxable wages during July and December, following notice being given to the employee in June and November. This added benefit will cause additional income taxes as well as FICA, Medicare and SDI to come out of the paycheck containing the taxable benefit. Please consult your tax advisor.
By initialing below I am indicating I have read and understand the above requirements and limitations regarding the Tuition Waiver Benefit: