UHR Procedures: Tuition Support Program

The current capped amount for Non-University of Michigan Courses taken between August 1, 2012-July 31, 2013 is $1,594.00 per term.

Complete Tuition Support Request and give to the unit supervisor. If the staff member needs a decision on whether the request is approved before registration, the request must be submitted to the supervisor at least 20 University business days before registration. Please note that tuition advances/reimbursements, exceeding $5,250 in a calendar year, for graduate level courses, will be considered taxable income and will be reported to the Internal Revenue Service.  Federal, state and FICA taxes will be withheld on any amount in excess of $5,250.00.

Review Tuition Support Request and advise the staff member whether the request is approved. Remind the staff member of the IRS regulation which limits the amount of non-taxable tuition reimbursements for graduate level courses to $5250 per tax year.

If request is denied (tuition reimbursement or advance), forward a copy of the request to the appropriate Human Resources office with an explanation of why it was denied.

Approved Requests:

Tuition Reimbursement: Upon receipt of the required documentation (official grade report and paid bill or receipt), initiate a payment to the employee via the Additional Pay Workflow process using the following earnings codes:
TRN-Tuition Refund UnderGrad Non Taxed,
TRT-Tuition Refund Graduate Non Taxed, or
TRS-Tuition Refund Graduate Taxed. 

Once the Additional Pay transaction is approved, the tuition reimbursement will be included in the staff member’s next biweekly or monthly paycheck. If the staff member is paid from a sponsored project, the supervisor should forward all tuition documentation to the Office of Research and Sponsored Projects (ORSP) for processing and payment.  Federal, state and FICA taxes will be withheld on any annual amount in excess of $5,250.00, for graduate level courses.

Tuition Advance: Promptly after approving a request, initiate a payment to the employee via the Additional Pay Workflow process using the following earnings codes:
TRN-Tuition Refund UnderGrad Non Taxed,
TRT-Tuition Refund Graduate Non Taxed, or
TRS-Tuition Refund Graduate Taxed. 

Once the Additional Pay transaction is approved, the tuition advance will be included in the staff member’s next biweekly or monthly paycheck. If the staff member is paid from a sponsored project, the supervisor should forward all tuition documentation to the Office of Research and Sponsored Projects (ORSP) for processing and payment.  Federal, state and FICA taxes will be withheld on any annual amount in excess of $5,250.00, for graduate level courses.

Unsuccessful Completion of Course:
If the course is not successfully completed (tuition advance only):

For active employees:
Initiate a deduction via the Additional Pay Workflow process using the earnings code used in providing the Tuition Advance payment.  Determine from how many paychecks the deduction will be taken, not to exceed a maximum of six months.  Once the Additional Pay transaction is approved, the deduction will be taken from the staff member’s next biweekly or monthly paycheck.

For terminated employees:
Send memo/email to the Payroll Manager of the Pay/Timekeeping Section as soon as known and provide the amount owed so Payroll may make deductions from any remaining paychecks to the extent allowable by law. Notify the Office of Research and Sponsored Projects (ORSP), if the employee is funded by ORSP.

Retain the Tuition Support Request (tuition reimbursement or advance) in the department files.