Employer Provided Educational Assistance
Benefit eligible WVU and WVU Research Corporation employees are eligible to receive
employer provided educational assistance (EPEA) from the University on degree or
certificate programs. EPEA includes, but is not limited to, University, college,
and department tuition waivers (regardless of the educational level), University,
college, and department scholarships, and other amounts paid to or on behalf of
an employee related to the employee's educational pursuits.
Although EPEA is considered a taxable fringe benefit to the employee, they are subject
to special rules under the Internal Revenue Code (26 U.S. Code § 127) [PDF]. The first $5,250 in EPEA received in a calendar
year is not taxable income. As such, employees will only be taxed on amounts in
excess of $5,250 (example: if an employee receives $6,000 in EPEA in a calendar
year, only $750 will be taxable). Taxable amounts will be reported on an employee's
Form W-2.
These guidelines apply only to educational assistance received as part of an employee's benefit eligible employment. Educational assistance received by student workers (including graduate assistants) is not considered employer provided educational assistance. All educational assistance will be reported on Form 1098-T, Tuition Statement.
These guidelines apply only to educational assistance received as part of an employee's benefit eligible employment. Educational assistance received by student workers (including graduate assistants) is not considered employer provided educational assistance. All educational assistance will be reported on Form 1098-T, Tuition Statement.
To ensure appropriate reporting and taxation of educational expenses, additional educational-related payments to employees (such as registration fees paid by a department) should be processed through the employee's student account in Banner/STAR.
When WVU Tax Services receives notification that an employee has received EPEA, we
will review the year-to-date amount of EPEA received by the employee. The dollar
amount of any EPEA received in excess of $5,250 for the calendar year will be added
to the employee's wages and the appropriate federal, state, and FICA taxes will
be withheld from the employee's pay.
WVU Tax Services will send a taxable fringe benefit notice to employees prior to withholding taxes from their pay. This notice will outline the total amount of EPEA received by the employee for the calendar year, the taxable amount of EPEA received by the employee for the calendar year, and the pay date taxes will be withheld on. Employees will also have the option to spread the taxable amount across multiple pays to offset some of the tax burden.
WVU Tax Services will send a taxable fringe benefit notice to employees prior to withholding taxes from their pay. This notice will outline the total amount of EPEA received by the employee for the calendar year, the taxable amount of EPEA received by the employee for the calendar year, and the pay date taxes will be withheld on. Employees will also have the option to spread the taxable amount across multiple pays to offset some of the tax burden.