Staff/Faculty Tuition Remission

Eligible staff/faculty will receive remission for tuition only. All other charges are the responsibility of the staff/faculty member using tuition remission. 

Please note that staff/faculty tuition remission no longer requires a paper form. To enroll in tuition remission, log into myRutgers and click on the Staff/Faculty Remission button under the My Benefits widget.

*All eligibility requirements are available on University Human Resources. 

Please be aware that the full value of staff/faculty graduate tuition remission is subject to New Jersey state tax withholding. In addition, under federal regulations, any graduate tuition remission benefit over $5,250 per calendar year is also considered taxable. 

State taxes will be withheld according to the schedule below for each semester that remission is used. 

Federal withholding will begin in the first semester in which remission benefit exceeds $5,250 and every subsequent semester during the calendar year when remission is used. 

2024 Tax Withholding Schedule 

Note for employees who have Pennsylvania withholding tax: the state remission is withheld after $5,250 limit following the federal law. 

How do I, as an employee, calculate in advance the approximate tax impact of my employee graduate tuition remission?

• Full value of staff/faculty graduate tuition remission is subject to New Jersey state tax withholding (unless student is in a TA or GA position)
• Under federal regulations, any graduate tuition remission benefit over $5,250 per calendar year is also considered taxable (unless student is in a TA or GA position)
• Federal withholding will begin in the first semester in which remission benefit exceeds $5,250 and every subsequent semester during the calendar year when remission is used.

State taxes will be withheld according to the tax withholding schedule for each semester that remission is used. For the current year tax withholding schedule visit the Staff/Faculty Tuition Remission page (under the ‘Does Tuition Remission Affect My Taxes' dropdown).

Tax Impact to Paycheck:

Add your full employee tuition remission amount to your estimated biweekly salary. This equals your total estimated taxable compensation. This figure will be used when calculating your Federal and State withholding. Although the amount of your taxable employee tuition remission is not included in your pay as wages you are responsible for paying State and Federal tax on the amount.

Although the amount of your tuition remission is applied equally across four pay periods, the tax impact could be less in the first 1-2 pay periods due to the exclusion of federal tax on the first $5,250 of tuition remission.

An Example: If the taxable employee tuition remission is $8000 it will be divided into $2000 per pay and the first $5,250 will be subject to state tax only.

• Paycheck 1 $2000 is subject to State Tax only
• Paycheck 2 $2000 is subject to State Tax only
• Paycheck 3 $1250 is subject to State Tax only and $750 is subject to both State and Federal Tax
• Paycheck 4 $2000 is subject to both State and Federal Tax