tuition reimbursement for job related undergrad

LE · July 2006

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 · July 2006

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 · July 2006

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 · July 2006

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

tuition reimbursement for job related undergrad

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