Tuition Waiver
Process for Taxation of Non-wage Compensation
Description
A permanent employee can receive up to $5,250 in free tuition per calendar year with no tax liability. Any amount that exceeds that in a calendar year is taxable.
This will appear on the employee’s paycheck as:
Job related tuition, signed off by a department head, is exempt from this rule and is tax-free.
Employee’s Responsibility:
- The employee has no responsibility to the University other than completion of the tuition waiver form.
Cashier’s Office Responsibility:
- Provide a spreadsheet to University Payroll at the end of each semester (see below for due dates), with the following information:
- Employee Name
- Employee ID number
- Total Waived to date
- Amount previously reported in that calendar year
- Amount for current semester
- Spring Semester - spreadsheet due by April 30th
- Fall Semester – spreadsheet due by October 31st
- Summer Semester – spreadsheet due by August 31st
University Payroll’s Responsibility:
