REG 07.55.08 – Tuition Waiver for Faculty and Staff – Procedures

Authority: Issued by the Chancellor. Changes or exceptions to administrative policies issued by the Chancellor may only be made by the Chancellor.

History: First Issued: December 19, 2006. Last Revised: June 7, 2016.

Additional References:
N.C. Gen. Stat. § 116-143
Application for Faculty/Staff Tuition Waiver

Contact Info: Benefits Office (policy) (919-515-2151); Cashier’s Office (processing of waiver) (919-515-2986)

1. Introduction

This regulation implements NCSU POL07.55.07 – Tuition Waivers for Faculty and Staff. Specifically, the regulation establishes application procedures to request Faculty/Staff Tuition Waivers and establishes the roles and responsibilities for campus units who process the applications. The Human Resources Benefits Office (Benefits Office) is responsible for policy promulgation and interpretation. The University Cashier’s Office (UCO) handles the processing of the waiver and maintains all data associated with waiver requests.

2. Definitions

2.1. “Tuition” shall mean the tuition charges for the academic year established by the Board of Governors and shall not mean charges or fees for enrollment in correspondence courses, continuing education courses, extension courses, or other instruction principally supported by receipts from enrollees.

2.2. “Full-time faculty member” and “full-time staff member” shall mean a person whose employment obligations within the University of North Carolina renders the employee eligible for membership in the Teachers’ and State Employees’ Retirement System of North Carolina, the Optional Retirement Plan or the Law-Enforcement Officers’, Firemen’s, Rescue Squad Workers’, and Civil Air Patrol Members’ Death Benefits Act established under N.C. Gen. Stat. § 143-166. “Full-time faculty member” and “fulltime staff member” shall include personnel of the United States armed forces during the time they are assigned under military orders to an ROTC program of a constituent institution of the University of North Carolina as a permanent change of station.

2.3. “Employing institution” shall mean an institution of the University of North Carolina, including the North Carolina School of Science and Mathematics and the University of North Carolina Hospitals at Chapel Hill, which is the employer of record of the faculty or staff member; provided, that the General Administration shall be the employing institution of those persons of whom the General Administration is the employer of record.

2.4. “Period of normal employment” shall mean that period of time beginning with the undertaking of full-time employment under written or oral agreement within The University of North Carolina and ending with the satisfaction or discontinuation of the agreement for full-time employment.

2.5. “Normal employment obligations” shall mean those services that the faculty or staff member is obligated by written or oral agreement to perform for the employing institution.

2.6. “Year” for the purpose of counting “three courses per year” shall mean a fall semester, subsequent spring semester, and the summer sessions. The “year” for evaluation of the taxability of tuition benefits received is the calendar (tax) year.

2.7. “Fees” shall mean those student fees required for attendance at NC State related to credit instruction, regardless of when the instruction occurs or by what means it is delivered. Campus policy must specify under what circumstances, if any, a student may receive a waiver for receipts-supported courses.

3. Application Procedures

3.1. Each eligible faculty or staff member (hereinafter “employee”) requesting a tuition waiver must:

3.1.1 Enroll in the desired course(s) no later than the last day to add/drop a course (census date) for the semester or summer session being attended; and

3.1.2 Submit a completed, properly endorsed “Application for Faculty/Staff Tuition Waiver” form with signed approval of the appropriate Vice Chancellor/Dean, Director, or Department/Unit Head to the UCO no later than 5:00 p.m. of the last day to add/drop a course (census date) for the semester or summer session being attended.

3.1.3 Enrollment in courses and forms submitted after the last day to add/drop a course (census date) will not be accepted for waiver.

3.2. If enrolling at a campus other than NC State, it is the employee’s responsibility to submit the original application to the appropriate office of the enrolling institution by the deadline prescribed by that particular institution.

3.3. The UCO will contact the Benefits office to verify that the faculty/staff member is in an eligible employment status.

3.3.1. After receiving eligibility confirmation from the Benefits Office, the UCO will verify that the request does not exceed the allowable number of waivers. Individuals who are not in an eligible employment status or who have exceeded the allowable waivers will be notified in writing by the UCO that the waiver cannot be accepted. If the waiver is not accepted, the employee will be allowed to drop the class within five (5) business days without penalty or may continue in the class and pay all applicable costs.

4. Calculating the Waiver

4.1. One course in the summer session and up to two courses in the fall or spring may be “removed” from the employee’s schedule before calculating the cost of any remaining courses. The waiver is applied to the course(s) with the greatest number of hours, regardless of the number of hours associated with that course.

4.1.1. If an employee is taking multiple courses, tuition will be charged at the full rate for the hours remaining in the schedule after reducing the total hours by the hours of the tuition-waived courses.

4.1.2. The course with the greatest number of hours is selected and removed first.

4.1.3 If class hours are equal, the On-Campus courses are selected over Distance Education courses.

4.2. Courses with a co-requisite lab/practicum are treated as one course.

4.3. Incremental Tuition costs associated with certain programs (ex: MBA, MAC) will also be included in the waiver calculation. If an employee is taking multiple classes the Incremental Tuition will be charged based on the rate for the remaining schedule.

4.4. Residency does not have an effect on the amount waived. The out-of-state rate will be waived at the full amount for that course.

4.5. Formula Used by the UCO

The following formula shall be employed to calculate the cost. The UCO shall:

4.5.1. Review the employee’s schedule for total number of courses and hours registered;

4.5.2. Deduct the hours of the course with the greatest number of hours from schedule. When taking multiple classes and the hours are equal, “on-campus courses will be selected for waiver over “distance education” courses;

4.5.3. Calculate the full rate on remaining course(s); and

4.5.4. Add the processing fee, if applicable.

5. Fees and Taxation

5.1. If a participating employee does not continue in an eligible employment status throughout the entire semester during which the tuition waiver had been requested, and

5.1.1. Who wishes nonetheless to continue their course enrollment, will become responsible for the full amount of the in-state or out-of-state tuition and fees for the total number of credit hours, which will be charged to the student’s/employee’s account, OR

5.1.2. Who withdraws from their course enrollment immediately coincident with the discontinuation of their eligible employment status, will not be held responsible for the tuition and fees.

5.2. The UCO will provide the Payroll with a list of faculty and staff who have utilized the waiver each semester. Payroll will consolidate the list for the fall, spring, and summer sessions [to create a calendar year list] to determine if any employee has exceeded the IRS allowable limit. Employees with waiver amounts that exceed the IRS allowable limits may be subject to taxation on the excess value. Payroll will notify employees that the excess amount will be processed as “Wages in Kind” for purposes of taxation.

5.2.2. Certain job-related education may qualify for exclusion from income as a working condition benefit. To qualify for tax exclusion, the course(s) must meet at least one of the following tests:

5.2.3. The education is required by NC State or by law for the employee to keep his or her present salary, status, or job. The required education must serve a bona fide business purpose of the employer.

5.2.4. The course(s) maintains or improves skills needed in the job.

5.2.5. If the education meets one or both of the above tests, it is not qualifying education if it:

5.2.6. Is needed to meet the minimum educational requirements of the employee’s present trade or business, or;

5.2.7. Is part of a program of study that will qualify the employee for a new trade or business.

5.3. The value of the tuition waived will not be taxable if the employee withdraws or drops the tuition-waived class no later than the last day to withdraw with a prorated refund for that semester.