Companies use two main types of tuition programs to support continuing education for their workforce, Tuition Assistance and Tuition Reimbursement.
Tuition Assistance programs offer to pay a portion or all of the tuition for the student at the time of registration. These awards may renew once or several times per year, depending on the particular academic calendar and the policies of the individual programs. ISTS offers services to handle the entire process from application, selection and notification to check disbursement and renewal processing.
Tuition Reimbursement pays a portion or all of the tuition for a student by reimbursing the student after he or she completes a course or multiple courses. These programs are generally available year-round to accommodate for summer courses and students seeking to take smaller course loads or single classes. ISTS offers comprehensive services to manage all aspects of a tuition program including expense eligibility verification, Internal Revenue Code Section 127 compliance as well as payment and renewal scheduling.
These programs should not be confused with any scholarships or other awards companies give away, as they are benefits for their employees and generally spouses or children are not eligible. Each company may define what expenses qualify for reimbursement or assistance. The most common approved expenses include undergraduate and graduate-level academic courses, registration and enrollment fees, technical or vocational classes, certificates and training. In addition the majority of programs cover the cost of books and course-related materials. Some may even include a computers or campus parking fees.
ISTS offers a portfolio of services that resolve the complexity associated with designing and administering these tuition programs. Our services are proven to reduce employee confusion and frustration, while increasing interest and participation.
There are tax implications that impact a business’ decision to offer a program and the benefits associated with it. Internal Revenue Code section 127 allows public and private employers to provide up to $5,250 per year of tax-free reimbursement for tuition, books and education fees!