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Can a teacher ask for wages to be paid in her kids tuition?

 
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amother




OP
 

Post Tue, May 10 2022, 2:00 pm
Is it legal for a employer (a school) to pay a portion of wages as tuition to another school for a teachers child?
I remember hearing that this is legal and the teacher can have less taxable income as a result. Is this truly legal? Does anyone have this arrangement with thier employer?
I am a teacher and I am wondering if I can ask my employer for this benefit. Thank you in advance!
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amother




Mayflower
 

Post Tue, May 10 2022, 2:07 pm
It is legal if the school paying the tuition in place of the wage has tuition reduction program set up. It can’t be paid on. One off basis.

https://www.irs.gov/government.....ction
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amother




OP
 

Post Tue, May 10 2022, 2:11 pm
Thank you. I dont really understand what the IRS is saying- is it only for college tuition? Or elementar school tuition/preschool tuition would be included? Thank you so much for your help!
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amother




Mayflower
 

Post Tue, May 10 2022, 2:28 pm
If the both schools are legally educational institutions and the school paying has a programs set up, then yes it can be done
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amother




SandyBrown
 

Post Tue, May 10 2022, 2:52 pm
Can be used for school tuition. Any age.
Only teachers can do this
The money has to come off salary. Not be in addition to salary.
It’s a govt perk of being a teacher.
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amother




Bluebonnet
 

Post Tue, May 10 2022, 2:54 pm
I think any employment can offer this for pre school (under age 5/6). I may be wrong.
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amother




Geranium
 

Post Tue, May 10 2022, 3:01 pm
amother [ SandyBrown ] wrote:
Can be used for school tuition. Any age.
Only teachers can do this
The money has to come off salary. Not be in addition to salary.
It’s a govt perk of being a teacher.

And it needs to be a benefit offered to ALL employees equally.
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amother




SandyBrown
 

Post Tue, May 10 2022, 3:03 pm
amother [ Bluebonnet ] wrote:
I think any employment can offer this for pre school (under age 5/6). I may be wrong.


Yes. You have to opt in during open enrollment. Money is taken off paycheck.
But even if don’t do it that way can claim when filling taxes as a deduction.
(I sent to ppl homes soy work wouldn’t pay. But bec the Morah gave me her ssn I could claim directly on my taxes. Just for pre-primary ages and day camp for all ages)
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Hashem_Yaazor




 
 
 
 

Post Tue, May 10 2022, 3:07 pm
amother [ SandyBrown ] wrote:
Can be used for school tuition. Any age.
Only teachers can do this
The money has to come off salary. Not be in addition to salary.
It’s a govt perk of being a teacher.

Actually it's a perk on top of salary. Can't be a deduction. Can have total compensation package written as salary plus perk of QTR...
There's a safe harbor threshold and therefore it needs to be capped at something reasonable. It shouldn't be more than wages paid.
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Hashem_Yaazor




 
 
 
 

Post Tue, May 10 2022, 3:09 pm
amother [ Geranium ] wrote:
And it needs to be a benefit offered to ALL employees equally.

Only of that employment category.
So it can differ between assistants, part time teachers, teachers with no experience, etc
Best practice is for schools to have these pay scale classifications set up in advance and then when someone is hired, it's easy to identify which perks an employee is eligible for.
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amother




Mayflower
 

Post Tue, May 10 2022, 5:44 pm
amother [ Bluebonnet ] wrote:
I think any employment can offer this for pre school (under age 5/6). I may be wrong.


You are wrong. Tuition reduction only works for teachers of a school.

Sounds like You are referring to dependent care expenses for a tax credit. If the employee is eligible for it, the employer can pay without any plan in place.
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amother




SandyBrown
 

Post Tue, May 10 2022, 5:55 pm
Hashem_Yaazor wrote:
Actually it's a perk on top of salary. Can't be a deduction. Can have total compensation package written as salary plus perk of QTR...
There's a safe harbor threshold and therefore it needs to be capped at something reasonable. It shouldn't be more than wages paid.


Thank you for correcting me. I got confused there.
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amother




Viola
 

Post Tue, May 10 2022, 6:02 pm
Hashem_Yaazor wrote:
Actually it's a perk on top of salary. Can't be a deduction. Can have total compensation package written as salary plus perk of QTR...
There's a safe harbor threshold and therefore it needs to be capped at something reasonable. It shouldn't be more than wages paid.


Is that the only caveat? What does safe harbor threshold mean?
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Hashem_Yaazor




 
 
 
 

Post Tue, May 10 2022, 6:03 pm
amother [ Mayflower ] wrote:
You are wrong. Tuition reduction only works for teachers of a school.

Sounds like You are referring to dependent care expenses for a tax credit. If the employee is eligible for it, the employer can pay without any plan in place.

Does not need to be specifically teachers of a school. Any one working in a school can be eligible for QTR if the school offers that perk.
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