Tuition Support Plan changing to provide tax savings

Tuition Support Plan changing to provide tax savings

June 9, 2015


Queen’s is making a change to its Tuition Support Plan, which provides financial assistance to help offset the costs of post-secondary tuition fees for the dependant children, spouses or partners of eligible Queen’s employees.

Previously, tuition support payments were made to the employee, but beginning in August they will be made directly to the student. This new payment process and recent changes in the Income Tax Act mean that payments will no longer be considered a taxable benefit to the Queen’s employee.

“Queen’s is proud to be able to support the education of its employees’ family members through the Tuition Support Plan,” says Caroline Davis, Vice-Principal (Finance and Administration). “Employees have advocated for this change over the years and the university is very pleased that it can help provide tax savings and a better benefit to students.”

Tuition support payments will now be considered taxable income in the hands of the student, who in most cases will have a lower income and pay less tax than the employee. In addition, the university will no longer be required to withhold tax deductions when making the payment, so the student will receive the full amount of the benefit.

Diane Pointer, Director of Total Compensation in Human Resources, says that while the students will now be paid directly, the employee will still have to apply for the benefit.

“The application process remains largely the same, with employees using the same online system to submit an application,” says Ms. Pointer. “However, they will have to provide some additional information, such as the student’s social insurance number, banking information and address, to enable us to make the payment and issue the proper income tax slips.”

Applications for the Tuition Support Plan open on August 15 for most employee groups. For more information visit the plan’s webpage on the Human Resources website or contact your HR Advisor. Since every situation is unique, if you have questions about your personal tax situation, please consult your financial advisor.