One of the greatest benefits employees can get from their employers is a tuition reimbursement; when an employer compensates the costs of a higher education for the employee. This will benefit both the employee as well as the employer.
The employee is the obvious beneficiary since they are getting their education paid for which is very pricey. Many businesses will only pay for a graduate-level degree. An average public state college costs $10,000 – $15,000 per year whereas an average private college or university can run up to $30,000 per year. With these costs, it takes a well established business to send their employees back to school. If an employee is fortunate enough to find a company that can offer this benefit, they must understand that it does not come without any cost to them. The courses will have to pertain to the curriculum of the company; if an employee decides to take courses out of the curriculum, they will most likely have to pay for it themselves. Also, as some companies will pay all the expenses, some will only pay for part of the total expenses. Many employers base the amount of payment to the grade point average (GPA) of the employee. It is typical that the required GPA is a minimum 3.5; for each point the employees GPA drops, the employer may decrease the compensation. Employees must also understand that they may have to pay for their education up front and the company will reimburse them upon completion. This may alter the choice of courses the employee decides to take at once.
The employers also benefit from the tuition reimbursement. Businesses offer tuition reimbursement for their employees either for the employee to acquire or expand their skills for their current position. With the extra education, an employer will receive employees with all the knowledge and skills they need to be successful in the business, enhancing the productivity of the workplace. The employer can choose the courses or the degree the employee must take to have the program paid for ensuring the quality of the information the employee obtains. The employee will also be able to take on more assignments and finish them with a higher quality performance. Returning to obtain more information will also be guaranteeing the company less employee turnover. As an employer, they can demand that the employee stay with the company for a certain amount of time if they decide to take the tuition assistance; though many employees will not leave the company if they are anticipating the assistance. Along with getting a more qualified employee, employers receive a tax exemption up to $5,252 a year. This is called a qualified tuition program which allows someone to prepay or contribute to a students education expenses.
Apply now to get more information on tuition reimbursement and qualified tax breaks on the distribution for your education costs.