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Employees like working for organizations that partner with them to develop professional acumen. There are many benefits to a continuing education program.
This motivated workforce seeks employers who offer generous benefits that include tuition reimbursement.
Part of a tuition reimbursement policy is a corresponding tuition reimbursement request form.
The request form should be completed by employees who request reimbursement for tuition costs.
Create A Process
Process is everything!
Create a process to complete and submit the request for tuition reimbursement.
This process should be considered a function of the human resources department.
Tuition reimbursement is part of a comprehensive employee benefits package.
How Does Tuition Reimbursement
Benefit Employers?
Changing technologies, business practices, and workplace cultures require constant development of talent.
Employers invest in continuing education in an effort to help employees improve workforce skills.
For instance, 2020 has been a year of change in how work is done. Much of that change has come in the way virtual work is organized and completed.
How Do Companies Pay For
Tuition Reimbursement Benefits?
Tuition reimbursement benefits are part of a comprehensive compensation package.
Employee compensation is part of a benefits package that is included in the overall budget.
For example, a business may budget a total compensation package for an administrative assistant of $50,000. Of that $50,000:
Salary = $40,000 is salary
Medical Insurance = $5,000
Retirement Contribution = $2,000
Continuing Education/Tuition Reimbursement = $3,000
Total Compensation = $50,000
How Does Tuition Reimbursement Work?
Businesses that offer a tuition reimbursement benefit create a policy, procedure, and process.
A tuition reimbursement policy will define what is (and what is not) a covered tuition benefit.
This policy will also explain the process of applying for reimbursement, the necessary documentation, and approval.
For instance, an employee may have an interest in completing an undergraduate degree. A tuition reimbursement policy will define which degree programs are covered under the policy.
How Do Employers Verify Grades
For Tuition Reimbursement?
Every business has internal processes that manage grade verification.
The most common practice is to require employees to submit their final grade report before tuition reimbursement is made.
For instance, if an employee takes a semester course that ends on December 15, the employee will wait until final grades are distributed and submitted to the employer before their tuition is reimbursed.
How Is Tuition Reimbursement Taxed?
According to the IRS: If you receive educational assistance benefits from your employer under an educational assistance program, you can exclude up to $5,250 of those benefits each year.
This means your employer should not include the benefits with your wages, tips, and other compensation shown in box 1 of your Form W-2.
What Should I Include In A
Tuition Reimbursement Form?
A tuition request form should include:
- Employee demographic information – i.e., name, address, phone, email;
- The name of the school the employee is requesting reimbursement for;
- Graduate or undergraduate degree program;
- Course title, course number, and credit hours;
- The course begin and end dates;
- Tuition for the course;
- Tuition fees;
- Justification for classes – how the course work will improve employee performance;
- Application review, approval, and signatures.
Sample Tuition Reimbursement Request Form
This form should be completed, and a photocopy should be sent to Human Resources.
The original form and supporting documents should be given to the department head. Forms must be completed, and final approval must be received prior to the first day of class.
Demographic Information
Employee Name:
Phone Number:
Address:
City/Zip Code:
Social Security #:
Department:
Job Title:
Name of School:
Course Information
Proposed Course is:
□ Undergraduate Course Credit □ Graduate Course Credit
Course Number:
Course Title:
Credit Hours:
Course Begins:
Course Ends:
Tuition, Fees, and Itemized Receipts Required
Are courses for credit leading to a degree?
□ Yes □ No
Name of Diploma/Degree:
Major Field of Study:
Are you receiving VA benefits or other educational, financial support?
□ Yes □ No
If yes, what assistance?
Attach supporting documentation addressing the following questions and any other comments:
How does the proposed course of study relate to your job assignment/position duties?
If the course meets during your normal work hours, how will your work schedule be adapted?
How will the course-provided knowledge/techniques improve your performance and be useful to the company?
I have read and understood the Tuition Reimbursement Policy and agree to the terms of the policy.
Employee Signature: Date:
Review and Signatures:
The Department Head will review, sign off, and forward to HR, even if not approved.
If approved, HR will send a copy to the employee. HR will also e-mail notice of approval to the employee and the employee’s department head.
If the request is not approved, HR will inform the parties of the decision.
Department Head Signature: Date:
□ Approved □ Denied
If denied, state the reason:
Human Resources Signature:
Date:
□ Approved □ Denied
If denied, state the reason:
This tuition reimbursement request form should accompany the tuition reimbursement policy. This template should be modified to meet the needs of your particular organization.
You can access an editable copy of this form by clicking here.
Does your business offer tuition reimbursement to your employees?