Educational Assistance becomes taxable when:
- Each employee receives $5,250.00 in a calendar year (resets in January) per IRS regulations.
- Any amount over $5,250 is then taxed and divided over pay periods for deduction:
- Six (6) for Biweekly employees
- Three (3) for Monthly employees.
- Any amount over $5,250 is added to the gross income, where its taxed, and then that amount is subtracted from the employee's net pay.
- Employees receive an email notifying them they have exceeded $5,250
Learn more about Educational Assistance Program - HR Policy 319 or need further assistance connect with the Benefits Office.