Graduate Tuition Remission
The University manages its tuition remission plan in accordance with Internal Revenue Service (IRS) regulations.
Graduate-level tuition remission is subject to income tax withholding. Employees enrolled in graduate courses will be exempt from income tax withholding for the first $5,250 of the graduate tuition remission benefit per calendar year – this exemption does not apply to dependents and/or spouses. The value of the tuition in excess of $5,250 (or in full in the case of dependents/spouses) in one calendar year is accounted for as a taxable benefit to employees. For more information, please reference our Graduate Tuition Remission FAQ.
In an effort to minimize the per pay period impact of graduate tuition taxation, you are permitted to include courses you plan on taking (but have not yet registered for) in your graduate tuition tax liability calculation and spread your projected yearly total tuition remission benefit evenly over the remaining payroll periods in the calendar year.
Helpful Tools! The tool below is solely for estimation purposes and provides a conservative estimate of the additional taxes that you will owe on your taxable employee graduate tuition remission, using the Supplemental Tax rate, for the year. Please keep in mind, the Payroll department uses an Annualized tax rate to calculate your tax withholdings – which is specific to the withholding status and personal exemptions claimed on your tax forms – so this estimation might be lower/higher than what is actually withheld from your check.
Box 1: Enter your total tuition cost. Your total should include the tuition and general institution fees total for the credits you wish to include in your estimate. To calculate your total tuition cost, please reference OSA’s tuition chart and general institution fees chart.
- Eligibility percentage as a full-time staff/faculty
- Eligibility percentage as a part-time staff
- Eligibility percentage as part-time faculty
You should only include the percentage you’re eligible for.
Box 2: If you are the student, enter your $5,250 exemption. If the student is your spouse/dependent, enter 0.
|Total Tuition Remission Benefit: (a)|
|If you are the student, enter 5,250. ***This is a negative amount***
If you are not the student, enter 0. (b)
|Total Tuition Liability: (a+b)|
|Social Security (FICA SS): (a+b)*6.2%|
|Medicare (FICA HI): (a+b)*1.45%|
|NY State: (a+b)*9.62%|
|NY City: (a+b)*4.25%|
|Yonkers Resident: (a+b)*1.61135%|
** This tool is not intended to be used by you or anyone else for the purpose of tax-advice or tax-evasion. Each taxpayer should seek advice from their independent tax adviser, based on the taxpayer's particular circumstances.
*** This tool provides a rough estimate for the taxes being withheld from your Graduate Tuition remission liability for the entire year. In order to calculate the pay period impact, reference our Calendar of Payroll Dates and divide your year estimate by the number of available pay periods.