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Employee Educational Benefit (EEB) Program

The Employee Educational Benefit (EEB) Program aims to double employee benefits by transitioning to a Qualified Tuition Reduction Plan, saving employees money while supporting their educational pursuits. The proposed changes align with IRS regulations and allow UTSA to waive tuition and fees for staff, enhancing their educational opportunities. The program comparison highlights favorable tax implications, making higher education more accessible for employees starting Fall 2012 registration.

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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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