Tuition Waiver

As part the “Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) ,” which was signed into law on June 7, 2001, Section 127 of the Internal Revenue Code was extended permanently for both graduate and undergraduate courses, effective January 1, 2002. This benefit enables employers to assist workers to further their education at a cost of up to $5,250 per year tax free, whether or not the course is job-related.

NOTE: CUNY eligible employees are hereby advised that undergraduate and graduate level courses in which they enroll in using the CUNY Employee Tuition Fee Waiver Form OFSR 305, may be reportable as wages and subject to withholdings if educational assistance benefits exceed the $5,250 threshold, are non-job-related and do not meet the requirements of the working condition fringe benefit” exclusion. To meet the requirements of “working condition fringe benefit” exclusion
the course must:

  1. maintain or improve skills that an employee is required to have for employment; and
  2. be expressly required by the employer, or is legally required in order to retain an established employment relationship, status or rate of
    compensation.

Moreover, the course must:

  1. not be for the purpose of satisfying the minimum educational requirements to qualify for employment; and/or
  2. not to qualify the employee for a promotion or transfer to a new trade or business.

Form & Procedures

Procedures

EMPLOYEE
Employee obtains the CUNY Employee Tuition Waiver Form OFSR 305 packet. Complete, sign and date Management Certification page 2, and CUNY Employee Classification Certification page 3. Submit OFSR 305 packet to supervisor for approval. (Email to supervisor. Response from supervisor or management representative will suffice only if signature cannot be applied to form. Specify approval of information stated within form.)

NOTE* Completed form must be submitted to the bursar at college of enrollment prior to the start of the semester.

EMPLOYEE SUPERVISOR/MANAGEMENT REPRESENTATIVE:
Complete ‘Supervisor/Management Representative’ section, sign and date. (Page 2) Email OFSR 305 packet to College of Employment HR Office, and CC Employee. (Reference designated HR Tuition Waiver designee signers.)

COLLEGE OF EMPLOYMENT HUMAN RESOURCE OFFICE:
Sign and date attestation of Management Certification and CUNY Employee Classification Certification, Box A (Page 3). Email OFSR 305 packet to Campus of Enrollment Registrar. Request to include cc to employee on all phases of waiver.

COLLEGE OF ENROLLMENT REGISTRAR:
Complete Box B (Page 4). Email OFSR 305 packet to College of Enrollment Bursar with CC to employee and all prior parties

COLLEGE OF ENROLLMENT BURSAR:
Complete Box C (Page 4). Email OFSR 305 packet to College of Employment HR signer with CC to employee and all prior parties.

COLLEGE OF EMPLOYMENT HUMAN RESOURCE OFFICE:
Complete Box D (Page 4). Forward via email to College of Employment Payroll office to record. CC employee and supervisor.

COLLEGE OF EMPLOYMENT PAYROLL:
Complete Box E (Page 4). Email completed application to employee.

If the educational benefit exceeds the $5,250 threshold and the course is determined to be non-job related and does not meet the working condition fringe benefits exclusion within the Internal Revenue and University Accounting Office guidelines, the HR Director of the College of Employment will so advise the Payroll Office so that the actual dollar amount of the tuition fee that has been waived will then be reported as wages and be subject to tax withholding. The determination will be recorded on the reverse side of the form.

If you add or delete a course you must submit the appropriate documentation to the HR Office at your College of Employment. The HR Director will notify the Enrollment Bursar to adjust employee’s student account statement in CUNYfirst Student Financial.