Employers use this form to recover the cost of voluntary training if the employee leaves prior to fulfilling an agreed-upon term of service.
Employers use this form to recover the cost of voluntary training if the employee leaves prior to fulfilling an agreed-upon term of service.
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Tuition reimbursement is an employee benefit like healthcare, 401K and paid time off. It means a company pays you back or reimburses eligible employees a certain amount towards the cost of tuition. Since the amount may not cover all higher education costs, another term for this type of program is tuition assistance.
Begin the request by giving your name, employer and position within the company. List each course for which you would like to receive reimbursement. Provide course dates, the academic institution that offered the course, your grade for the course and the cost of the course plus any necessary books or supplies.
If your employer pays more than $5,250 for educational benefits for you during the year, you must generally pay tax on the amount over $5,250. Your employer should include in your wages (Form W-2, box 1) the amount that you must include in income.
A reimbursement agreement is an agreement between two parties where one party agrees to reimburse certain expenses incurred by the other party.
Employers require tuition reimbursement payback agreements to avoid training employees who use their education to get a new job working elsewhere. Companies legally protect themselves by making employees pay back reimbursements if the employee leaves the company within a specific time frame of completing the education.