1 / 6

Employee Educational Benefit (EEB) Program

Employee Educational Benefit (EEB) Program. EEB Background. Staff Council has been requesting enhanced benefits UTSA’s current program costs $285,000 / year

rogan-bartlett
Download Presentation

Employee Educational Benefit (EEB) Program

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Employee Educational Benefit (EEB) Program

  2. EEB Background • Staff Council has been requesting enhanced benefits • UTSA’s current program costs $285,000 / year • Changing from a 127 Qualified Educational Assistance Plan to a 177(d) Qualified Tuition Reduction Plan will allow us to double the benefit to employees

  3. Why change? • Under the current IRS plan, UTSA is paying itself for employee participation. • Under the proposed plan, as an educational institution, UTSA may waive designated tuition and fees to employees. • Allows the benefit to be doubled • Change to coincide with Fall 2012 registration which begins April 1st

  4. FY 11 EEB Participation

  5. Program Comparison

  6. Tax Implications • Undergraduate tuition & fees are not taxable at any amount of benefit. • For a graduate student taking 6 SCH during a tax (calendar) year, at a 20% tax rate, estimated liability is $332. • Total value of benefit = $1,660 - $332; employee ‘saves’ $1,328

More Related