Purpose

The purpose of this Tuition Remission Policy is to provide financial assistance for tuition to eligible Hofstra University employees, their spouses, and their IRS-dependent children, in accordance with University policy and applicable tax regulations.

Scope

This policy applies to eligible full-time and part-time employees and outlines tuition remission benefits, service requirements, credit limits, exclusions, tax implications, application procedures, and compliance requirements.

Policy

The Hofstra University Tuition Remission Program provides financial assistance to Hofstra University employee, their spouses, and their IRS dependent children (subject to the exclusions listed below). To be eligible for tuition remission, the applicant must meet all University admission and registration requirements. All University policies apply to tuition remission recipients.

Tuition remission for the employee and/or the spouse is available for both undergraduate and graduate courses. In the case of an IRS dependent child, tuition remission applies only to undergraduate courses taken in pursuit of an undergraduate degree. IRS dependent children that are admitted as visiting students must be pursuing an undergraduate degree at their home institution.

Tuition remission is available for one undergraduate degree per dependent child, and one undergraduate degree or graduate degree per spouse, who have not previously received a degree under this benefit policy.

Non-Tuition Charges
This policy provides remission for tuition only. The payment of all non-tuition charges (including fees) is the responsibility of the employee as well as the recipient of tuition remission and is not covered as a benefit under this policy. All charges not covered by this policy must be paid in accordance with the terms listed in the University Bulletin and Class Schedule. Pursuant to University policy, no one can register for courses where there is a hold on an account.

Exclusions
Tuition remission does not apply to: the Law School, the Medical School, the Executive MBA Program, the on-line MBA Program, Continuing Education and Professional Advancement courses, doctoral level course work (master’s level courses taken in pursuit of a doctoral degree that are otherwise covered in pursuit of a master’s level degree, may be covered) independent study courses, (for example, tutorials, graduate student teaching, graduate thesis, internships etc., unless required for the undergraduate degree/major). In the case of an IRS dependent child, graduate level courses are excluded (except for graduate level courses that may be required for certain undergraduate degrees/programs).

Deadlines

All employees are required to submit the Tuition Remission Application and the Graduate Taxable Tuition Remission Application (if applicable) by no later than January 1^st for Winter and Spring sessions, and by no later than April 1^st for Summer and Fall sessions. The Tuition Remission Application and Graduate Taxable Tuition Remission Application are both available on the Hofstra University portal under Forms, then Human Resources.

Spouse or Dependent Child Employed by the University

If an eligible employee of the University is also a spouse or dependent child of another employee of the University, that employee’s eligibility for tuition remission benefits, and all policy provisions relating thereto, will be determined based on that employee’s own employment category and not that of a spouse of parent who is also an employee. Therefore, eligible employees of the University will not be eligible for tuition remission benefits as a spouse or dependent child of another employee.

In addition, if an employee holds multiple positions within the University, tuition remission benefits will be determined on the employee’s primary position.

Benefits for Union Members
Union members should refer to their respective collective bargaining agreement for more information regarding tuition remission benefits, including any limitations thereof.

Benefits for Full-Time Employees-Non-Union

Employees

After a full-time administrative employee has completed 1 year of continuous full-time service*, they are eligible for tuition remission, subject to application deadlines (outlined above) and may enroll for up to 24 credits per academic year.

For employee applicants, courses should be scheduled so that they do not interfere with an employee’s regular work schedule. In instances where a required course overlaps with the employee’s regular work schedule, written approval prior to the commencement of the course must be obtained by the employee’s direct supervisor and department head.

Spouse

After a full-time administrative employee has completed 1 year of continuous full-time service*, their spouse may enroll in 6 courses divided as follows: 2 courses per Fall and

Spring semester (not to exceed 8 credits per semester); 1 course per Summer and

Winter session (not to exceed 4 credits per semester).

Dependent Children

After a full-time administrative employee has completed 1 year of continuous full-time service*, their IRS dependent children (defined below) are eligible for 25% of undergraduate tuition remission; after 2 years of continuous full-time service 50% of undergraduate tuition remission; after 3 years of continuous full-time service 75% of undergraduate tuition remission; and after 4 years of continuous full-time service 100% of undergraduate tuition remission, subject to application deadlines (outlined above).

A dependent child is defined as per the IRS definition of a Qualifying Child. . A Qualifying Child is a child who meets the IRS requirements to be a dependent for tax purposes. In general, a child will no longer be considered a dependent after age

Proof of dependent status is required.

Benefits for Part-Time Administrative Employees

(All other union Part-Time employees and Adjuncts should refer to their respective Collective Bargaining Agreements)

Employees

After a part-time administrative employee has completed 1 year of continuous part-time service*, they are eligible for tuition remission subject to application deadlines (outlined above) and may enroll in 1 course per semester (not to exceed 4 credits) for up to 2 semesters per year;

After 5 years of continuous part-time service*, a part-time administrative employee may enroll in 2 courses per semester (not to exceed 8 credits) for up to 2 semesters per year.

Spouse

After a part-time administrative employee has completed 1 year of continuous part-time service*, their spouse may enroll in 1 course per semester (not to exceed 4 credits) for up to 2 semesters per year;

After a part-time administrative employee has completed 5 years of continuous part-time service*, their spouse may enroll in 2 courses per semester (not to exceed 8 credits) for up to 2 semesters per year.

Dependent Children

After a part-time administrative employee has completed 1 year of continuous part-time service*, their IRS dependent children (defined above) may enroll in 1 undergraduate course per semester (not to exceed 4 credits) for up to 2 semesters per year;

After a part-time administrative employee has completed 5 years of continuous part-time service*, their IRS dependent children may enroll in 2 undergraduate courses per semester (not to exceed 8 credits) for up to 2 semesters per year.

If Eligibility Changes During the Semester

Tuition Remission will be adjusted on a prospective basis.

Tax Implications^1**

Hofstra University is required by the IRS to impute income tax in certain instances.

Employees should consult with their personal tax advisors for specific questions regarding tax implications.

Undergraduate Programs for Employees, Spouses and Dependent Children

Tuition Remission for undergraduate degree courses is not considered a taxable benefit. Therefore, employees will not be required to pay income tax on the amount of the Tuition Remission benefit for undergraduate courses for themselves, their spouse, or their eligible dependent children.

Graduate Programs for Employees

In most cases, tuition remission for graduate courses will be taxed as follows:

Federal law does not require employees to pay income tax on the first $5,250 of their graduate tuition remission benefit each calendar year. If an employee receives over $5,250 of tuition remission in a calendar year, the amount over $5,250 will be considered taxable income to them.

The value of graduate courses over $5,250 in a calendar year is treated as if it were additional compensation paid to the employee and the taxes on this compensation are withheld from their paycheck. However, if the employee’s graduate course is work related and/or required for the employee’s position, then it will not be considered a taxable benefit. Please note, verification of work-relatedness is subject to the approval of the Office of Human Resources. If the graduate course is not deemed work-related, then it will be considered taxable as per the above paragraph.

Graduate Programs for Spouses

Under Federal Tax Law, the full value of graduate courses taken by spouses are treated as if it were additional compensation paid to the employee and the taxes on this compensation are withheld from the employee’s paycheck.

Proof of Relationship

Employees are required to provide proof of relationship with their spouse and dependent children as part of the application process. Please note that any fraudulent information that an employee provides pertaining to the relationship of their spouse or dependent children will result in immediate termination of employment and the employee will be held responsible for all tuition remission received by the applicant as well as any tax consequences or penalties incurred by the University as a result.

Termination

Tuition Remission benefits end on the employee’s last day of employment. If employment terminates during a semester, the course(s) that the employee, their spouse or dependent child is taking may be dropped without penalty. If the employee, spouse, or dependent child elects to continue the course(s) when the employee is no longer in the employ of the University, tuition owed will be prorated for the balance of the semester. Employees can contact Student Financial Services at (516) 463-8000 to make arrangement for payment of any outstanding balance.

Fafsa & Tap

All full-time students are required to complete the Free Application for Federal Student Aid (FAFSA) and the Tuition Assistance Program (TAP) forms on-line. For further information regarding FAFSA and TAP application, please contact Student Financial Services at (516) 463­-8000. The TAP awarded is applied as a credit against tuition remission. Please note that any Hofstra Grants or Federal Funds (including Federal Work Study) may be adjusted when tuition remission is applied.

Questions

Please email the Office of Human Resources at TuitionBenefits@hofstra.edu with any questions regarding Tuition Remission benefits.

^*Service prior to any break in service lasting longer than 30 days will not be included when calculating continuous service. For purposes of calculating years of employment, a full-time employee shall receive credit for one (1) year of employment for every two (2) years of employment completed as a part-time employee.

**Employees should consult with their personal tax advisors for specific questions regarding tax implications.

Related Policies and References

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