Career Calling

August 14, 2015

What to Know about Employer-paid Education

 

It sounds like a good thing when an employer offers education reimbursement. In many ways, it is. Knowledge stays with us even when we leave a job. However, there are restrictions that should be investigated before knowing how valuable this benefit would be for you.

First, know what is covered. Many companies only pay for education that is related to your job function.

Second, some employers require that employees maintain a certain GPA, or tuition is not reimbursed.

Third, employer-sponsored education is tax-free up to $5,250 annually. If the reimbursement is larger, the employee has to report extra taxable income.

Finally, you have to work at company for a required period of time, or you will be required to repay part of the tuition. This condition is the most serious downside of the benefit. Accepting tuition reimbursement can limit your ability to move to a new employer. Know what the terms for repayment are before you take any education reimbursement.

Education can open many career doors. However, if an employer is offering a reimbursement, know what the conditions are before you take advantage of this benefit.

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