It Never Hurts to Ask: Exploring Employer-Funded Education Benefits

Employers of all types and sizes offer financial help to employees who want to further their education or upskill. This assistance comes in many forms, but it’s often up to the employee to ask.

The first step is finding out what your employer offers. According to the IRS, laws govern some basic aspects such as tax liability but, in general, companies can set details including eligibility criteria and compliance guidelines.

For example, the University of Arkansas offers a tuition discount to employees of its sister campuses around the state. Details are set out in a policy adopted by the U of A System Board of Directors and published on U of A websites with more information available from benefits administrators at each campus.

The U of A also partners with educational benefits company Guild to allow employees of Arkansas-based companies Walmart Inc., Sam’s Club and Tyson Foods Inc. to use their employee education benefits to help pay for select online U of A learning opportunities.

According to the Society for Human Resource Management, or SHRM, 45% of public and private employers offer a tuition reimbursement program for employees. Helping to pay the cost of an employee’s education, whether an academic degree or professional credentials, doesn’t benefit just the employee. Employers gain, as well. Showing an employer how you can use improved skills to benefit the company may make the difference when you request assistance.

 

Working Adults

Survey data show that most U of A students who study in online degree programs are working adults. The average age of undergraduate students is 30 and the average age of graduate students is 35, according to most recent data. The statistics show 81% work full time, 51% are parenting, 70% own their home and 34% have their tuition sponsored or subsidized by their employer.

You can read about the experiences of U of A students and graduates of online degree programs who used employer tuition assistance programs on the Student Stories page. They include:

• Lori Ragan earned her bachelor’s degree with tuition assistance from her employer, an international chemical company with a facility in El Dorado.
• Keri Reynolds earned her master’s degree with funds for professional development from her employer, a nonprofit that serves children in south Arkansas.
• Trey Jenkins earned his bachelor's degree with tuition assistance from his employer, a credit union in Fort Smith.
• Tressyn Gehl earned her nursing bachelor's degree with tuition assistance from her employer, a large hospital group in Indiana.

 

What to Know

Be sure to find out whether you qualify for assistance from your employer. Some things to know, according to the IRS:

• You won’t have to pay any tax on the amount of benefits up to $5,250 per calendar year. Amounts above $5,250 are generally viewed as taxable wages to the employee unless another exclusion applies.
• Employers may set conditions for eligibility, when an employee’s participation in the plan begins and prorated benefits for part-time employees.
• Benefits may include payments for tuition, fees and similar expenses, books, supplies and equipment for either undergraduate or graduate courses. Payments do not have to be for work-related courses.

 

What to Ask

Be sure you know all the details about your company’s assistance program. Some things to ask:

• Does your employer offer tuition assistance or professional development funds in your benefit package? Ask to see the information in writing.
• Are you limited to where you can spend the money, such as particular institutions or degree programs? Are online programs included?
• What expenses are covered?
• Can you use funds to earn professional credentials?
• If you need to make a case for assistance, can you show how education directly relates to your role and how it would help you do your job more effectively?
• How does the program work, as tuition reimbursement to the student after a course is completed or direct payment from the company to the school upon enrollment?
• Are there grade or completion requirements? Does money have to be repaid if the requirements are not met?
• What is the annual dollar limit? If it goes over $5,250, how is the excess handled?
• Are student loan payments included as part of the benefits?

 

We Can Help

The U of A Global Campus offers assistance to people interested in online degree programs or workforce training. Those seeking college credit can contact the Online Student Liaison Office by phone at 479-575-6493, email at online@uark.edu or chat by clicking on the red Razorbot chat button in the bottom right corner of the website.

Those seeking Professional and Workforce Development non-credit training programs can call 479-464-5024 or send an email to training@uark.edu.

The U of A offers more than 100 online degrees, certificates and licensure programs. And even more non-credit training programs to upskill and reskill.