Issue:
Per IRS regulations, the maximum amount an employee can be reimbursed tax-free for tuition assistance is $5,250. Currently WT 2700 (tuition reimbursement) is limited to $5,000 and WT 2706 (books) is $250. We also have prior year codes 2705 (prior year tuition) and 2707 (prior year books) that combines the amount with the previous year to make sure we don’t go over the maximum amount allowed per the tuition policy.
There has been a revision to the Tuition Assistance Policy that requires a change to the WT codes due to tax implications. The new policy allows for $10,000 in tuition reimbursement plus $750 in books. Therefore, we need to increase the maximums AND determine how to capture the taxable portion over $5,250.00.
Please let me know what the next steps should be to accomplish the change. I only have one employee that is past the current limit, but we can rectify any additional amount owed to them once the new codes (or other solution) are implemented.
it is not calculating even after setting the standard configuration (federal and state unemployment.)
Thanks in advance..