Tuition Reduction Benefit (TRB)

1. Information Session July 1, 2013 Tuition Reduction Benefit (TRB)

2. Tuition Reduction Benefit (TRB) • Overview • TRB for academic year 2013-2014 • After academic year 2013-2014 • TRB Processing • Selecting the Right Benefit • Demo of the TRB Document • Frequently Asked Questions

3. Overview Today • Taxes are withheld on Tuition Assistance Benefits (TAB) and on SS2s with “job duties required” • TAB is confusing with 75% being applied to tuition, then 25% less taxes coming later as a direct payment • Difficult to determine the benefit amounts when you want to fully cover tuition

4. Overview Why is this changing? • UT System’s Office of General Counsel rendered an opinion that benefits reducing tuition can be considered nontaxable for TAs, AIs, and GRAs • Colleges want more flexibility in deciding which students receive benefits, and in what amounts

5. Overview Starting Fall 2013: Tuition Reduction Benefit • Flexible, nontaxable benefit for students assigned in TA, AI, and GRA job codes • Replaces Tuition Assistance Benefit (TAB) for TAs and AIs • Replaces tuition remission for GRAs • Applies towards resident tuition only

6. Overview TRB does NOT affect • Scholarships/Fellowships (SS1s) • SS2 tuition benefits for undergraduate students • SS2 tuition benefits where job duties are not required • SS2 tuition benefits to cover nonresident tuition or fees for TAs, AIs, or GRAs

7. Overview SS2 documents with job duties required will continue to withhold taxes

8. TRB for academic year 2013-2014 • Provost’s funds currently budgeted for TAB will be used to cover TRB for TAs and AIs assigned on eligible accounts • Colleges need to create TRB documents • $3784 for 20hour assignments • $1892 for 10-19 hour assignments • Office of Graduate Studies will monitor • FRMS will verify eligibility on 20th class day

9. TRB for academic year 2013-2014 Units can create additional TRB documents to provide discretionary benefits to TAs, AIs, and GRAs from noncentral (local) funds • Benefits must be related to employment • May be additional benefits for TAs and AIs • GRA benefits must follow the rules of the grant from which they are paid • Total TRB benefits will never exceed tuition bill

10. After academic year 2013-2014 • The new Provost may reevaluate the tuition benefit budget and distribution policies • ???????

11. TRB Processing • Each college will develop a procedure to process SS3 documents • Centralize in the dean’s office? • Delegate to individual departments? • Electronic office managers have been notified regarding setup of routing and command authorizations

12. TRB Processing • One account per document • Up to 200 recipients per document • Upload recipient information from Excel to quickly populate a document Format will be a two-column spreadsheet of UT EIDs and benefit limits

13. TRB Processing Utilizes the *FBMENU AR Code system • AR codes have 3-character identifiers • Each AR code is a profile that indicates what portions of a tuition bill can be covered and by what account • *DEFINE SS2 and TRB documents are used to apply AR codes to students’ profiles • Departments determine what can be covered by an AR code when they process SS2s

14. TRB Processing Utilizes the *FBMENU AR Code system • TRB AR codes cover resident tuition • AR codes are applied when tuition bills are calculated, reducing the bill amount • At mid-semester, SAR runs tuition billing jobs to move funds from the account on the AR code profile to tuition income accounts • Adding or removing an AR code results in a recalculation of the tuition bill, which can result in an amount due from or due to the student

15. Selecting the Right Benefit • FRMS Scholarship/Fellowship (SS1) Provide direct payments to individuals. • Departmental Tuition Credits (SS2) Reduce a student’s tuition bill. Taxes are withheld if related to employment (job duties required). Done in *DEFINE. • FRMS Tuition Reduction Benefit (SS3) Reduce the tuition bill of a TA, AI, or GRA as a nontaxable benefit of employment.

16. Demonstration

17. Frequently Asked Questions What if a TA or AI has part-time TA assignments in two colleges?

18. Frequently Asked Questions What if a TA or AI has part-time TA assignments in two colleges? TRB looks at total hours assigned to determine benefit amount on Provost’s funds. Colleges should coordinate. OGS will monitor. This only applies to academic year 2013-2014.

19. Frequently Asked Questions How will Provost’s funds be distributed to colleges?

20. Frequently Asked Questions How will Provost funds be distributed to colleges? For 2013-2014, an account will be created for each college within the Provost’s unit. The Provost, in consultation with the Graduate School, will ensure that TAs and AIs on eligible accounts are covered.

21. Frequently Asked Questions Are Provost’s funds to be used to provide TRB benefits for GRAs?

22. Frequently Asked Questions Are Provost funds to be used to provide TRB benefits for GRAs? Not for academic year 2013-2014. Provost’s funds may only be used to provide benefits to TAs and AIs on eligible accounts. Decisions regarding 2014-2015 and beyond will be determined by the new Provost.

23. Frequently Asked Questions How do I pay for the portion of a TA, AI, or GRA’s tuition not covered by TRB (e.g., 10-hr nonresident TA)?

24. Frequently Asked Questions How do I pay for the portion of a TA, AI, or GRA’s tuition not covered by TRB (e.g. 10 hr nonresident TA)? • SS3 documentTo pay balance of resident tuition bill from local college accounts. • SS2 document • For TAs and AIs must decide if it’s related to employment • For GRAs, it must be a fellowship • SS1 direct payment