Employer-Provided Educational Assistance
Graduate and professional tuition remission is a limited taxable benefit. Section 127 of the Internal Revenue Code presently exempts only $5,250.00 per calendar year. For those employees who exceed this allocation during the spring semester, the respective social security, Medicare, state, and Louisville Metro taxes will be collected through the January, February, March, and April payrolls. Taxes applicable to the summer term will be collected through the May, June, July, and August payrolls. Fall semester taxes will be collected through the September, October, November, and December payrolls. In all instances, the taxable value will be added to federal taxable income; however, no federal taxes will be withheld throughout the calendar tax year.