| Bulletin Number: |
A-498 |
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| Date Issued: | 12/28/2001 | Date Last Updated: | 12/28/2001 |
| Bulletin Name: | Educational Assistance Payments | ||
| Purpose: | To inform agencies that the tax rules for non-job-related educational assistance payments are the same for 2001 as they were for 2000 (update of Bulletin A-479).
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| Tax Rules: | Payments for job-related educational assistance continue to be excludable.
The $5,250 exclusion for non-job-related undergraduate education courses remains in effect for 2001. Non-job-related undergraduate assistance payments in excess of $5,250 must be reported to PaySR. There is no exclusion for non-job-related graduate level courses for 2001. Therefore, payments for non-job-related graduate level courses made in 2001 must be reported to PaySR for wage reporting and withholding.
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| Agency Reporting to PaySR: | Taxable amounts for 2001 can be entered into the Payroll System (PaySR) immediately after these have been paid through the CAS. See Payroll Bulletin 292 for instructions on how these taxable amounts should be entered into the Payroll System.
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| Changes for 2002: | The $5,250 exclusion for non-job-related educational assistance will be available for graduate level courses that begin in 2002 or later. The $5,250 exclusion for both undergraduate and graduate level courses will remain in effect permanently.
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| Questions: | Direct questions on this bulletin to the Accounting Information Center at AcctSys@osc.state.ny.us or (518) 473-1170.
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