Tuition Remission and Exchange
As an institution of higher education, Willamette University believes in the value of education, whether for self-improvement, social advancement, or as a means for improving knowledge, skills, and abilities for success at work. One of the many outstanding benefits afforded to full-time employees of Willamette University is our Tuition Remission and Exchange program. Tuition benefits are available to employees as well as their dependent spouse/domestic partner and dependent children.
- Dependent Child Tuition Remission/Exchange Program
- Employee Tuition Remission Program
- Spouse Tuition Remission Program
Taxability for Tuition Remission Program for Employees
The Tuition Remission program for employees complies with IRS regulations that allows for up to $5,250 of non-taxable educational assistance to be provided to employees per tax year for graduate level courses. Tuition benefits in excess of $5,250 in the tax year are accounted as a taxable benefit to employees such that they will need to pay taxes on these amounts as if they received the dollar value of the benefit in cash. Taxability FAQ
All employees who utilize this benefit are strongly encouraged to track their tuition remission benefit for the year and plan accordingly with the payroll department. Graduate tuition remission becomes taxable to the employee when the benefit is received and exceeds the $5,250 exclusion. At that point, every dollar of the graduate-level tuition remission benefit is taxable. If you are taking graduate courses throughout the year, this means that the additional income and additional taxes will always occur in the latter part of the year. Employees who are receiving this taxable benefit should plan accordingly for the decrease in net pay that will occur when the additional taxes are withheld.