Taxation of Tuition Waivers

As a benefit paid by the employer, tuition waivers are treated as a taxable benefit in certain instances.

  • Waiver(s) for a dependent: The waiver is a taxable benefit to your dependent (not to you)
  • Credit course/program(s) for yourself: Non-taxable
  • Extended Learning course/program: The waiver may or may not be taxable

Taxability of Extended Learning Courses

  • Most business or employment-related courses are not taxable.
  • Course of a general-interest or personal-interest nature are considered taxable.

When you enter a course code into the waiver, a box will appear to advise you if that course is taxable. Please see sample image below:

Exemption from Taxes

If you believe that the course you are receiving a waiver for is related to your employment (example: a wine or cooking course could be employment-related for a Food Services employee), enter your supervisor's email address in the provided box, and an email will be sent to them requesting their confirmation.

Once it is received, Payroll will change your waiver to non-taxable.