Educational assistance includes tuition waivers and tuition remission.
HR 3448 contained retroactive revisions to section 127 of the Internal Revenue Code. The taxable wages must be reported on the employee's Form W-2 and are subject to payroll tax withholding. The Campus Payroll Office is required to coordinate the necessary payroll tax withholding and reporting. Graduate-level educational assistance provided to University teaching and research assistants generally does not result in taxable income if the tuition waiver or remission is not a payment for employment services. Campuses should review agreements with research assistants and teaching assistants and make any necessary revisions to ensure that tuition remission and tuition waivers that represent scholarships are not misconstrued as taxable wages.