tuition reimbursement for job related undergrad

LE

Do you have to reimburse the EE through payroll or can you reimburse them with a check through accounting? I thought there was a limit $5250 per year before it had to be taxed, is that correct?

I would like to start sending these requests to Accounting and have them issue the check. Please let me know if I can do this.

Thanks
Ellie

Down_the_Middle

The tuition reimbursement program you refer to is found in IRS code 529----tax free reimbursement for approved educational expenses. If you have this type of benefit in place, the employee can receive up to $5,250/yr tax free. If not, then the reimbursement is taxable income to the employee. Short answer, but hope it helps.

LE

Thanks for the info. we are going with the reimbursement through accounting and once it reaches the $5,250 we will put it through payroll. Have a good one. Ellie

Down_the_Middle

Reminder:
Keep in mind you need a formal plan description to clarify what our qualified expenses. The IRS does not permit certain types of expenses 2/b reimbursed tax-free, so I would recommend some research or benefits advice b/4 leaping into this program........... My 2-cents