Tuition Assistance Policy
This document provides the foundation for a standard corporate tuition assistance policy. It provides the key components consistent across most corporate tuition assistance policies. Use it as a guide to assist you in writing your Company's policy, or to benchmark your existing policy.
[Insert Company] provides tuition assistance to eligible employees as a means of enhancing their level of occupational proficiency or to provide career development potential within the organization. The intent of this policy is to provide financial assistance to support external initiatives in acquiring additional knowledge and/or skills. [Insert Company] encourages our employees to maintain a high level of knowledge and skill in their current or potential role.
The Tuition Assistance Policy provides our employees the opportunity for professional growth and development by assisting them to meet the tuition expense of satisfactorily completed courses offered by approved educational institutions.
A. Regular part-time (who are benefits eligible) and regular full-time employees with [Insert years of service] of continuous employment at the time the course work begins are eligible to apply for tuition assistance.
B. Part-time, Co-op, interns and temporary employees are not eligible for tuition assistance under this policy.
C. Employee must be in a benefits-eligible status during the entire educational program/course. If there is a change in employment status (i.e. F/T to P/T) during the academic year, reimbursement maximums will be based upon the employment status at the time of enrollment for the course.
In consideration of receiving tuition assistance under this policy, the employee is to agree to commit to [Insert Service Obligation] of continued service with the [Insert Company] following the completion of each course. Should the employee voluntarily resign within [Insert Time Obligation] of completing a course and receiving tuition reimbursement, he or she will be required to refund the full amount.
Full-time employees will be reimbursed at the rate of [Insert payment percentage] percent of credit hours satisfactorily completed, not to exceed [Insert calendar year cap] per calendar year. For purposes of determining the years in which the tuition payments are made, employees will be reimbursed within 30 days from the date they submit evidence of receiving the minimum grade required in order to be reimbursed.
B. Part-time employees, who are benefit eligible, will be reimbursed at the rate of [Insert payment percentage] percent of credit hours satisfactorily completed, not to exceed [Insert calendar year cap] per calendar year.
C. Tuition reimbursement will be based on the cost of credit hours only. Student fees (parking, library, activity, registration, late fees, books, supplies, etc.) will not be reimbursed. Reimbursement received from other sources, i.e. scholarship, grants, etc. is excluded from the reimbursable amount received.
To be eligible for tuition assistance under this policy, the course or program must meet one of the following criteria:
1. Improve the employee’s skills in her/his present position
2. Prepare the employee for another appropriate position within the organization
In addition, the course or program must Be taken at a college or university that is accredited by one of the following six regional accrediting bodies; The New England Association of Schools and Colleges, the North Central Association Commission on Accreditation and School Improvement, the Middle States Association of Schools and Colleges, the Southern Association of Schools and Colleges, the Western Association of Schools and Colleges, and the Northwest Association of Schools and Colleges.
Application & Approval Process
Employees must apply for participation in the tuition assistance program prior to enrolling for the semester/term. The request will be submitted to the employee’s manager on the form provided for this purpose. The manager will review the request and forward it to the [Insert approving department] with the manager’s recommendation to approve or disapprove.
The [Insert approving department] will review the request for policy compliance and will notify the employee if the initial request has been approved or denied.
E. Upon completion of the course(s), the employee must submit her/his grade(s) with detailed invoices and proof of payment (showing the cost of each credit hour) to the appropriate [Insert approving department] designee for the approved course(s) within 60 days of the course end date. Reimbursement will be made only if the course grade is a "C" or better for an undergraduate course and "B" or better for a graduate course, or "pass" for a pass’ fail course. The [Insert approving department] will not submit a tuition reimbursement request for processing prior to receipt of evidence of satisfactory completion of the course.
Taxation of Education Benefits
Your tuition Assistance will be tax-free, up to $5,250 per calendar year, provided the course of study has direct applicability to your CURRENT job. Any reimbursement in excess of this amount will be taxable and subject to income and employment tax withholding.
The [Insert approving department]
is responsible for reviewing the request to ensure program compliance.
The Finance Department is responsible for processing tuition
reimbursements in accordance with IRS guidelines.