One of the provisions of the Omnibus Budget Reconciliation Act of 1993, signed Aug. 10, reinstates the exclusion from income of employer-provided educational assistance, retroactive to July 1, 1992, through Dec. 31, 1994. As a result, tuition refunds to staff members will no longer be taxed or reported as income. Changes have been made in the payroll system to immediately tax-exempt any future payments. Payroll files are being reviewed to identify any tuition refunds made earlier this year, and taxes will be refunded in staff members’ paychecks at the end of November.
The Department of the Treasury will issue regulations on how to handle tuition refunds for the period between July 1 and Dec. 31, 1992 at a later date.
