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Employee Waiver Information

I am a full time, benefit eligible employee and I have decided to take a class to further my education, is any portion of the tuition waiver taxable?

  • Yes. The IRS allows an employee to receive up to $5,250 in tuition waivers in each calendar year. Any dollar amount in excess of $5,250 is added to your gross wages and taxed accordingly.

Can I directly reimburse an employee for schooling costs versus processing it as a tuition waiver?

  • No. All schooling costs including books, laptops, special fees, etc. should be processed as a tuition waiver or scholarship. This would also include registration fees paid for students to encourage enrollment. All payments should be processed through the Banner Student Account System and not paid for by an individual employee and then reimbursed.