The University Payroll and Benefits (UPB) office is offering overview sessions on the taxation of tuition waivers for employees and students who receive graduate-level tuition waivers valued more than $5,250, and those who work with these individuals. This taxation does not apply to qualified Teaching Assistants or Research Assistants.

In accordance with the University of Illinois' Educational Assistance Plan that is in compliance with Internal Revenue Code Section 127, the value of graduate-level educational benefits exceeding $5,250 is subject to employment taxes and must be reported as taxable wages on Form W-2.  Effective January 1, 2012, federal and state income taxes will be withheld at graduated rates on taxable tuition waiver amounts in excess of $5,250.   The massmail sent to all employees and students on January 31, 2012, is posted on the OBFS Web site at:

The overview sessions will provide information on tuition waivers and the process for determining taxation. Emphasis will be on the change from the supplemental rate to the graduation rate. The session will conclude with a question and answer period.
To register for one of the following sessions, select "Tuition Waiver Overview Session" in the left panel for the appropriate campus or webinar at:


SPRINGFIELD -  February 20, 9:30 a.m.-12:30 p.m.
URBANA-CHAMPAIGN -  February 21, 9:30 a.m.-12:30 p.m.; February 22, 1:00-4:00 p.m.
PEORIA -  February 23, 9:30 a.m.-12:30 p.m.
CHICAGO -  February 24, 9:00 a.m.-12:00 noon; February 29, 1:30 p.m.-4:30 p.m.
ROCKFORD -  March 1, 9:30 a.m.-12:30 p.m.
WEBINAR (ALL CAMPUSES) March 2, 9:30-11:30 a.m. See registration site for instructions.

Questions regarding the overview sessions can be addressed to UPB Customer Service at or by calling one of these offices: UIUC: 217-265-6363, UIC:312-996-7200, UIS:217-206-7211.


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