How to Provide Tuition Reimbursement for Employees
Establishing a tuition reimbursement program at your company benefits both you and your employees. By providing refunds for classes and class materials in courses that relate to your business, your employees will be able to stay at the forefront of technology and industry advances in your field. A recent study by Spherion shows that over half of all employees who receive education support stay with their current employers for 5 years or more.
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Things You'll Need
- Tuition reimbursement application forms
- Funds
- Course schedules for area universities and community colleges
Instructions
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Set Up a Tuition Reimbursement Program
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1
Develop a budget for tuition reimbursement in your company. Some factors to consider are the costs of individual courses as well as the level of course work you wish employees to engage in. The amount of money you have to spend on a tuition reimbursement program will help to shape the program you set up.
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2
Determine what level of employee you wish to provide tuition reimbursement. Consider whether you want to invest your money in training staff members who are more likely to stay with your company, such as those in mid-level positions, or if you are willing to nurture those up-and-coming staff members on the chance that they will blossom into more high-level leadership roles in your company.
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3
Outline the kinds of courses and materials you are willing to reimburse. Whether they are vocational, academic or technical, make the most of your investment by supporting those courses that will provide your employees with skills they need on the job.
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4
Consult with your accountant to determine how much tuition reimbursement is tax deductible. Based on this figure, you may wish to support only a percentage of the total coursework or provide reimbursement up to the tax-deductible limit.
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5
Provide your employees with a detailed description of your tuition reimbursement program in a company-wide meeting or as part of the human resources welcome package for new employees. Your information packet should include who is eligible, where courses may be taken and how much reimbursement will be provided.
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6
Streamline a system for reimbursement by developing specific periods for payment of course and materials fees. Depending on your company and your tax schedule, it may be to your benefit to pay out in an annual sum or on a quarterly basis.
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Tips & Warnings
Another way to encourage continuing education among your workforce is to host ongoing-training events at your job site. These can be in the form of paid lecturers, workshops or classroom-style instructional sessions.
