Benefits » Perks » Tuition Assistance
Employees of the Laboratory may be eligible for tuition assistance according to certain guidelines. According to LANL Tuition Assistance Policy AM405 (pdf), the Laboratory provides tuition assistance only for courses taken through institutions with appropriate accreditation. Accrediting organizations must be recognized by the U.S. Department of Education or the Council for Higher Education Accreditation (CHEA).
Visit the CHEA website to determine appropriate accreditation of the school you are considering attending.
All LANS regular full-time and part-time employees are eligible for tuition assistance, as well as full-time limited term employees. Undergraduate and post-baccalaureate students are eligible for tuition assistance only if they are in full-time work status. Graduate students are eligible for tuition assistance if they are either in full-time or part-time work status. Casual employees and employees on leave of absence are not eligible.
Employees are reimbursed for tuition, fees, and book costs. Due to a recent change by CFO, transportation costs associated with advanced degree programs are allowable. Transportation includes airfare, rental fees, privately owned vehicle mileage payment, and other expenses related to transportation. Lodging, meals, or other incidental expenses are unallowable. This change is retroactive to October 1, 2004. The change does not apply to undergraduate programs-transportation costs for these programs continue to be unallowable.
Fill out Part 1 of Form 896 (pdf), Application for Tuition Assistance, and obtain group manager approval prior to the beginning of the course. Upon successful completion of the course, send the Form 896, a grade report, and receipts for tuition and books to HR-SVSCTR Tuition Assistance, MS P235. Part 1A is only required if you take a course in audit status. Part 2 is only required once you have received tuition assistance in excess of $5,250 in a calendar year.
Successful completion is a grade C or better in an undergraduate course, and grade B or better in a graduate course. Thesis or dissertation work requires a report showing "PR" for progress. Continuing education courses require a certificate of completion. No reimbursement is made for incomplete courses or courses that the employee withdraws from before the end of the term.
All class time for job-required courses is considered part of the job assignment and is paid as time worked. Time spent in job-related courses is counted as time worked when attendance is approved by the supervisor.
A supervisor may approve up to 20 hours of work time per full-time employee per week (up to 50% of the employee's scheduled work hours for part-time employees) for the employee to attend job-related courses if budget and work schedule constraints are met. The employee may not use release time for purposes other than attending classes. The supervisor may approve a request for tuition assistance for a job-related course and deny a request to treat the class time as time worked.
Advance payment is not permitted. Tuition reimbursement is made directly to the employee only upon proof of full payment to the institution and successful completion of coursework.
Required tuition and book expenses in excess of the amount that is received from other sources are allowable under the tuition assistance program.
It is not required to disclose the source or repayment terms of a loan being used to pay tuition. As with all tuition reimbursement, a financial statement from the school showing the actual costs and receipt of payment must be provided to the Tuition Assistance Administrator.
The IRS requires employers to withhold taxes from payments made to employees for educational assistance exceeding $5,250 per calendar year unless the courses meet specific IRS criteria.
If your education is required in order for you to meet the minimum educational requirements of your present position OR the education is part of a program that will qualify you for a new trade or business, you can expect to have tax withheld on all of your tuition assistance that exceeds $5,250 in a calendar year. In general, the Laboratory will consider educational assistance taxable if it leads to a degree that could qualify you for a position in a new job series. This is true even if you do not intend to seek employment in that series.
If the above criteria do not apply to you, the educational assistance will be assessed on a course-by-course basis, regardless of the degree. Tuition assistance will be subject to taxation unless the course maintains or improves skills needed in the current job or if it is required by the Laboratory or by law in order for you to keep your current salary or position. The educational requirements imposed by the Laboratory for employees in student programs do not satisfy the IRS criteria for job-required education. Once tuition assistance exceeds $5,250 in a calendar year, all courses that you have been reimbursed for in that year will be assessed to determine if they meet the IRS guidelines. Many elective courses that are part of an undergraduate degree will be subject to taxation.