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Employee Educational Benefit (EEB) Program

Employee Educational Benefit (EEB) Program. EEB Background. Staff Council has been requesting enhanced benefits UTSA’s current program costs $285,000 / year

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Employee Educational Benefit (EEB) Program

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  1. Employee Educational Benefit (EEB) Program

  2. EEB Background • Staff Council has been requesting enhanced benefits • UTSA’s current program costs $285,000 / year • Changing from a 127 Qualified Educational Assistance Plan to a 177(d) Qualified Tuition Reduction Plan will allow us to double the benefit to employees

  3. Why change? • Under the current IRS plan, UTSA is paying itself for employee participation. • Under the proposed plan, as an educational institution, UTSA may waive designated tuition and fees to employees. • Allows the benefit to be doubled • Change to coincide with Fall 2012 registration which begins April 1st

  4. FY 11 EEB Participation

  5. Program Comparison

  6. Tax Implications • Undergraduate tuition & fees are not taxable at any amount of benefit. • For a graduate student taking 6 SCH during a tax (calendar) year, at a 20% tax rate, estimated liability is $332. • Total value of benefit = $1,660 - $332; employee ‘saves’ $1,328

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