Payroll System Replacement Project

Subject: Educational Assistance Payments Bulletin No. 58
Date: 11/24/98
Purpose

This bulletin updates Bulletin A426/P963. The tax rules for non-job-related educational assistance payments are the same for 1998 as they were for 1997.

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 1998 and 1999.

GRADUATE LEVEL COURSES

There is no exclusion for non-job-related graduate level courses. Therefore, payments for graduate level courses made in 1998 and 1999 are subject to wage reporting and withholding. Payments for such courses made through the Central Accounting System (CAS) must be reported to the OSC Payroll System according to the procedures contained in this bulletin.

AGENCY REPORTING

The taxable amounts for 1998 should be data entered into PaySR as soon as possible, but no later than Institution Period 19-Lag and 20-Current, and Administration Period 18-Lag and 19-Current as described below.

DIRECT INPUT TO PAYSR

Agencies may enter the taxable value into PaySR on the Time Entry panel or report the transaction on Miscellaneous Payments File.

TIME ENTRY ON-LINE INSTRUCTIONS

1. Access the Time Entry panel by Start - Compensate Employees- Maintain Payroll Data U.S. - Use - Time Entry - Add.
2. Enter the following information in the Dialog Box to select the employee.

a. Department - enter the employee's agency code
b. EmpID - enter the employee's social security number
c. Employment Rcd Nbr - enter the employee's record number if other than '0'
d. Pay Period End Date - leave blank, defaults to the current period end date.

3. Click OK.
4. On the Time Entry panel enter the following information.

a. Earnings Begin Date - use the beginning of the current pay period
b. Earnings End Date - use the ending date of the current pay period
c. Earn code - enter or select the earnings code EDA for Education Assistance - Taxable
d. Amount - enter the amount of taxable Education Assistance
e. Cmts - click on this button if you would like to add comments

1. Type any comments relating to the taxable Education Assistance
2. Click OK

5. Click the Save button on the tool bar.

Agencies reporting this information using the Miscellaneous Payments File should use the same data elements as shown for Time Entry On-Line Instructions.

RECAP

TYPE OF EDUC. ASSIST. PAYMENT EXCLUDABLE EXCLUDABLE
UP TO
$5,250/YR
REPORTABLE AND SUBJECT TO WITHHOLDING
Job-Related Payments X
Non-Job-Related Payments
For undergraduate courses beginning before June 1, 2000 X
For graduate courses beginning after June 30, 1996 X

Direct payroll questions on this bulletin to the PaySR Help Desk at (518) 486-6745 (press 3).