By Offering Tuition Reimbursement, Employers Upskill Their Workers and Get a Tax Break
Companies with tuition reimbursement for their employees benefit in multiple ways. They provide employees with the chance to further their education and keep their skills up-to-date, making them an asset to the company. Tuition reimbursement programs also help attract and retain top talent.
Employers who offer tuition reimbursement can also benefit from a tax break. Companies can offer up to $5,250 per year in tuition reimbursement for college courses. The IRS allows employers to deduct the expense. The benefit also is not taxable for individual employees.
Why Working Professionals Benefit From a College Degree
Earning a college degree as a working adult can open doors to new opportunities, higher earning potential and career advancement. Online degree programs offer the flexibility to balance work, family and education, allowing you to learn on your schedule.
Earning a bachelor’s degree or master’s degree allows employees to gain the skills and credentials needed to stand out in today’s competitive job market while also building confidence and expanding their professional network.
Enrolling in an online degree program can provide an important next step toward achieving personal and professional goals.
The Benefits to Employers of an Upskilled Workforce
Employers who offer tuition reimbursement for employees benefit from a more skilled, loyal and motivated workforce. Employee education benefits include higher retention, boosted productivity and fostering leadership development within the organization.
Tuition reimbursement programs also improve recruitment efforts by attracting top talent eager to grow professionally. Supporting education demonstrates a commitment to employee success, strengthening workplace morale and building a reputation as an employer of choice in competitive industries.
Tax Break for Tuition Reimbursement Programs
Under section 127 of the U.S. tax code, the Internal Revenue Service allows employers to deduct up to $5,250 per year in tuition reimbursement for college courses for their employees. It’s most commonly used by employers to support their workforce in obtaining a bachelor’s degree or master’s degree. It also can be used by small business owners for their child’s tuition costs, if the child is an employee of the business.
The reimbursements may include payments for tuition, fees and similar expenses, books, supplies and equipment.
This break is a great benefit for those who want to earn their degree and use their employer’s tuition benefit program. For example, a $5,250 tuition reimbursement would pay for up to 6 courses or 18 credits in a Touro University Worldwide online BSBA degree program, and up to 5 courses and 15 credits in an MBA program, when coupled with a scholarship from TUW, which can cover up to 30% of the tuition cost.
Why Choose Touro University Worldwide?
Touro University Worldwide was founded on the belief that education is key to a successful democracy and providing equal opportunity to all citizens. TUW has been a pioneer in online education, expanding access to high-quality degree programs since the 1990s.
Touro University Worldwide offers a large selection of degree programs at the associate, bachelor, master and doctorate levels. Degree programs include business, psychology, health and human services, and general studies.
Touro University Worldwide is a great choice for adult learners and working professionals who benefit from the flexibility online degree programs provide. For those who wish to improve their lives by earning a college degree, we invite you to look over our course offerings to find the programs that best match your educational goals.