Scope - This guideline addresses the tax reporting requirements applicable to educational assistance provided by the University to employees' relatives.
Educational assistance includes tuition waivers and tuition remission.
Graduate Courses - Graduate level educational assistance provided to employees' relatives must be promptly reported to the Campus Payroll office. Graduate level educational assistance provided to employees' relatives generally results in taxable wages to the employees equal to the fair market value of the educational assistance. The Campus Payroll office is required to do the necessary payroll tax withholding and reporting. Example - In 1996, Professor A's wife, Mrs. A, decides to enroll in a graduate level computer science course. Professor A completes a tuition waiver form and gets Mrs. A's tuition waived.