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University Personnel Tuition Procedures

10 July 2014

The university provides tuition benefits for approved university employees, their spouse, and dependent children.

As per policy, eligible employees will start receiving the tuition benefit immediately, provided the hire date is on or before the Academic Calendar add/drop deadline of the desired semester or term. An employee’s spouse and children become eligible to receive the tuition benefit when the university employee is at least age 30 or has five years of eligible service, whichever comes first.

If a spouse and/or dependent child becomes eligible for the tuition benefit on or before the university add/drop deadline for the current/upcoming semester, the benefit will be applied.

If a spouse and/or dependent child becomes ineligible on or before the university add/drop deadline for the current semester/term, the tuition benefit will not be applied.

The following table provides clarification of when the tuition benefit applies to the upcoming/current semester in accordance with life events.

Life Event On or Before Add/Drop Deadline After Add/Drop Deadline
Hire Yes No
Employee turns 30 (i.e., spouse and children become eligible) Yes No
Marriage Yes No
Add a new child Yes No
Terminate employment No Yes
Divorce
(i.e., former spouse becomes ineligible)

No (for former spouse) Yes

TO RECEIVE BENEFITS

Day, Evening, and Audit Courses

To receive the tuition benefit for day, evening, and audit courses, the eligible individual (faculty, employee, retiree, spouse, child, etc.) must be admitted to the university through Admissions in the same way as a normal student to be eligible to attend courses. Additionally, all steps of the admissions process are still required. Since university employees are required to have a current Ecclesiastical Endorsement on record for their employment, the Ecclesiastical Endorsement requirement for admission should automatically be satisfied. However, if that step is not automatically satisfied, call the Admissions Office (2-5000) to resolve it.

After the individual is admitted, he/she must register for classes through the university’s registration system. Once registered for the desired course(s), the tuition charge will be applied to the individual’s tuition account no earlier than four weeks before classes start. Once the tuition charge is applied, in most cases, the tuition benefit will be added automatically as a credit to the tuition account in the amount for which the individual is eligible.

University Employees and/or Spouses attending Conferences and Workshops

Participation in Conferences and Workshops does not require admission to the university as a student. An eligible individual may register for courses online or by phone through Continuing Education. The registration process will recognize the individual is eligible and apply the benefit at the time payment is required. Please review the University Personnel Tuition Policy for eligible courses available through Conferences and Workshops.

SITUATIONS WHERE THE TUITION BENEFIT IS NOT AUTOMATIC

University Employees Attending Day Classes

If an active employee registers for any class scheduled between the hours of 7:00 a.m. and 5:00 p.m., an Employee Request for Class Attendance form must be completed and submitted to the Benefits Office before the tuition benefit will be applied to the individual’s account. This form can be found online at byu.edu/hr under “Employee Benefits” or in the Benefits Office. Failure to submit the form by the Academic Calendar add/drop deadline may result in 1) the course(s) being dropped by the Registrar’s Office, 2) additional fees, and/or 3) ineligibility to register for the following semester. This form must be submitted before each semester an employee attends at least one day class.

Spouse in a Graduate Program

If a spouse of an active employee is in a graduate program, the tuition benefit becomes taxable to the employee and needs to be applied manually by the Benefits Office after receiving the Tuition Taxation form. See “Taxation” below for guidelines. The taxation procedures must be followed for each semester/term a spouse attends the graduate program.

Children with More Than 130 Total Credits

If a child of an active employee has accumulated more than 130 total credits (not including AP, exam, or most transfer credits) the tuition benefit will not be applied automatically. The student needs to contact the Benefits Office either by email, phone, or a walk-in visit to have the tuition benefit applied manually to his/her account.

Children Attending BYU-Idaho

For a child of an active employee attending BYU-Idaho, the Benefits Office needs to be notified before the child starts to attend BYU-Idaho. Notifications are also necessary in situations where the child is taking a break from school (e.g., mission), has a name change, graduates, stops attending, or transfers to BYU.

University Employees Taking Independent Study Courses

Participation in Independent Study courses does not require admission to the university as a student. For an active employee to take an Independent Study class, he/she needs to pay the cost of the course out-of-pocket to enroll. Once the course has been completed and the active employee has received a final grade, he/she must contact the Benefits Office no later than 60 days from when the final grade was posted to receive a reimbursement. The reimbursement amount will be posted and dispersed through Student Financial Services.

Because Independent Study classes count toward the credit limits for employees, in order to be eligible for reimbursement the Independent Study credits must be allocated to a specific semester that has not already reached the credit limit during the time in which the course is being completed. For example, if the employee enrolls in an Independent Study course in September (Fall semester) and completes it the following May (Spring term), those credits can be allocated to either Fall semester, Winter semester, or Spring term. If all semesters/terms reached the credit limit, a reimbursement will not be available.

University Employees or Spouses in EMBA Program

If an active employee or spouse is accepted into the Executive MBA program, the individual needs to notify the EMBA Program Assistant or Director that he/she is eligible for the tuition benefit. The EMBA office will then bill the Benefits Office directly for the tuition charge. The tuition benefit does not pay for EMBA program charges, which includes books, fees, and the foreign business excursion.

The tuition benefit for a spouse in the EMBA program may be considered a taxable benefit. Please see “Taxation” below for guidelines.

Military Employees, Spouses, and Children Attending Any Course

All eligible military employees, their spouse, and/or their children attending any course must contact the Benefits Office to arrange for the benefit to apply before each semester attended.

The tuition benefit for a spouse and children of military employees is considered taxable. Therefore, a 1099 tax form will be sent to the military employee for the taxable amount in a given year.

Special Arrangements

A tuition benefit provided through legal contract or special administrative arrangements to individuals who are not employed or are no longer employed by the university is a taxable benefit. As a result, a 1099 tax form will be issued for the value of the benefit. Individuals eligible for the tuition benefit under these special arrangements must contact the Benefits Office to initiate the payment.

Grandfathered Benefit

An eligible individual working for a grandfathered organization must contact the Benefits Office to have the tuition benefit applied to their account. This is a taxable benefit and, as a result, a 1099 tax form will be issued for the value of the tuition benefit.

The departments that continue to have grandfathered employees include:

LDS Philanthropies Hired or retired prior to 1/01/1982.
Purchasing* Hired or retired prior to 10/01/1982.
Travel Management** Hired or retired prior to 1/01/2002.

*Purchasing employees who were hired on or after 10/02/1982 and terminated employment on or before 6/30/2009 are not grandfathered.

**Travel Management employees who were hired on or after 1/02/2002 and terminated employment on or before 6/30/2009 are also not grandfathered.

All Other Situations

In the event that an individual believes he/she is eligible for the tuition benefit but does not see the benefit on his/her tuition account, the individual should contact the Benefits Office for review.

TAXATION

In situations where the benefit is taxable (see Tuition Benefit Policy), active employees (excluding active military employees) will need to submit a completed Tuition Taxation form to set up a tax withholding schedule from their paycheck during the semester of the tuition benefit.

The Tuition Taxation form can be found online at byu.edu/hr under “Employee Benefits” or in the Benefits Office. Follow the instructions provided on the form. Once the Benefits Office receives the completed and signed form, the benefit will be applied to the individual’s account. This form must be submitted before each semester the individual attends.

For situations where the benefit is taxable to military and retired employees, a 1099 tax form will be sent to the individual for the taxable amount in a given year.

SCHOLARSHIPS

If a BYU scholarship is awarded and the recipient is eligible for a tuition benefit, the tuition benefit will be applied to the cost of tuition first. Any money awarded by the scholarship above the cost of tuition may be refunded to the scholarship recipient (based on the rules of the scholarship), except that no funds in addition to tuition will be given in situations that would jeopardize the university’s compliance with the National Collegiate Athletic Association (NCAA).

 

BRIGHAM YOUNG UNIVERSITY RESERVES THE ABSOLUTE RIGHT TO DEVIATE FROM THESE PROCEDURES.

To see the university policy to which these procedures are associated, please click here.

Updated by the HRS Web Team, Brigham Young University, Provo, UT 84602 - Copyright 2008. All Rights Reserved.