Information Session July 1,

 Overview  TRB for academic year  After academic year  TRB Processing  Selecting the Right Benefit  Demo of the TRB Document  Frequently Asked Questions 2

Today  Taxes are withheld on Tuition Assistance Benefits (TAB) and on SS2s with “job duties required”  TAB is confusing with 75% being applied to tuition, then 25% less taxes coming later as a direct payment  Difficult to determine the benefit amounts when you want to fully cover tuition 3

Why is this changing?  UT System’s Office of General Counsel rendered an opinion that benefits reducing tuition can be considered nontaxable for TAs, AIs, and GRAs  Colleges want more flexibility in deciding which students receive benefits, and in what amounts 4

Starting Fall 2013: Tuition Reduction Benefit  Flexible, nontaxable benefit for students assigned in TA, AI, and GRA job codes  Replaces Tuition Assistance Benefit (TAB) for TAs and AIs  Replaces tuition remission for GRAs  Applies towards resident tuition only 5

TRB does NOT affect  Scholarships/Fellowships (SS1s)  SS2 tuition benefits for undergraduate students  SS2 tuition benefits where job duties are not required  SS2 tuition benefits to cover nonresident tuition or fees for TAs, AIs, or GRAs 6

SS2 documents with job duties required will continue to withhold taxes 7

 Provost’s funds currently budgeted for TAB will be used to cover TRB for TAs and AIs assigned on eligible accounts  Colleges need to create TRB documents  $3784 for 20 hour assignments  $1892 for hour assignments  Office of Graduate Studies will monitor  FRMS will verify eligibility on 20 th class day 8

Units can create additional TRB documents to provide discretionary benefits to TAs, AIs, and GRAs from noncentral (local) funds  Benefits must be related to employment  May be additional benefits for TAs and AIs  GRA benefits must follow the rules of the grant from which they are paid  Total TRB benefits will never exceed tuition bill 9

 The new Provost may reevaluate the tuition benefit budget and distribution policies  ??????? 10

 Each college will develop a procedure to process SS3 documents  Centralize in the dean’s office?  Delegate to individual departments?  Electronic office managers have been notified regarding setup of routing and command authorizations 11

 One account per document  Up to 200 recipients per document  Upload recipient information from Excel to quickly populate a document Format will be a two-column spreadsheet of UT EIDs and benefit limits 12

Utilizes the *FBMENU AR Code system  AR codes have 3-character identifiers  Each AR code is a profile that indicates what portions of a tuition bill can be covered and by what account  *DEFINE SS2 and TRB documents are used to apply AR codes to students’ profiles  Departments determine what can be covered by an AR code when they process SS2s 13

Utilizes the *FBMENU AR Code system  TRB AR codes cover resident tuition  AR codes are applied when tuition bills are calculated, reducing the bill amount  At mid-semester, SAR runs tuition billing jobs to move funds from the account on the AR code profile to tuition income accounts  Adding or removing an AR code results in a recalculation of the tuition bill, which can result in an amount due from or due to the student 14

 FRMS Scholarship/Fellowship (SS1) Provide direct payments to individuals.  Departmental Tuition Credits (SS2) Reduce a student’s tuition bill. Taxes are withheld if related to employment (job duties required). Done in *DEFINE.  FRMS Tuition Reduction Benefit (SS3) Reduce the tuition bill of a TA, AI, or GRA as a nontaxable benefit of employment. 15

Demonstration 16

What if a TA or AI has part-time TA assignments in two colleges? 17

What if a TA or AI has part-time TA assignments in two colleges? TRB looks at total hours assigned to determine benefit amount on Provost’s funds. Colleges should coordinate. OGS will monitor. This only applies to academic year

How will Provost’s funds be distributed to colleges? 19

How will Provost funds be distributed to colleges? For , an account will be created for each college within the Provost’s unit. The Provost, in consultation with the Graduate School, will ensure that TAs and AIs on eligible accounts are covered. 20

Are Provost’s funds to be used to provide TRB benefits for GRAs? 21

Are Provost funds to be used to provide TRB benefits for GRAs? Not for academic year Provost’s funds may only be used to provide benefits to TAs and AIs on eligible accounts. Decisions regarding and beyond will be determined by the new Provost. 22

How do I pay for the portion of a TA, AI, or GRA’s tuition not covered by TRB (e.g., 10-hr nonresident TA)? 23

How do I pay for the portion of a TA, AI, or GRA’s tuition not covered by TRB (e.g. 10 hr nonresident TA)?  SS3 document To pay balance of resident tuition bill from local college accounts.  SS2 document  For TAs and AIs must decide if it’s related to employment  For GRAs, it must be a fellowship  SS1 direct payment 24