The Institution encourages its employees to further their own careers by continuing their formal education through enrollment in courses and degree programs. Under the Institution's Employee Education Policy, formal education programs undertaken by employees to further their own career development may be partially or fully fundable through this cost-reimbursable plan. The Human Resources Department administers the program.

I. Eligibility

To be eligible for assistance, the employee must be a regular employee who has completed at least six months of employment. Employees who enroll in courses prior to the end of the six-month period will be eligible for reimbursement if employed longer than six months. They are not eligible for prepayment.

II. Areas of Study Which Qualify for Reimbursement

A. Job-related studies from which knowledge can be gained that will enhance performance in a significant portion of the employee's present position.

B. Career-related studies that prepare for advancement in one's current field or a field in which the employee may reasonably be expected to work at the Institution.

The studies may be either individual courses or programs leading to a degree. Courses that may not be work-related but are required for a degree, and the degree program meets the above criteria, may be reimbursed.

III. Acceptable Schools and Courses

A. Acceptable under this plan are regular courses offered for credit at accredited schools, colleges, and universities; courses credited toward a high school diploma or equivalency certificate; and correspondence university extension courses.

B. MIT/WHOI Joint Program courses may be available to eligible employees upon their acceptance as a Special Student. There is a separate application procedure for Special Student status, which is handled by the Education Office.

C. Professional seminars and workshops do not qualify. Certain categories of training offered in intensive short courses, which may be required by the employee's department, do not fall under this policy, but may be covered by the departmental budget.

IV. Payment Policy

A. Reimbursable costs include tuition and required fees, but not transportation costs or fees for late or deferred payment of tuition. An allowance of $80.00 per course will be paid for required course materials upon presentation of receipts.

B. The maximum amount reimbursable for tuition and fees in a calendar year (January - December) is $4,000 and may be adjusted periodically. A semester of study falling mainly in one year is attributable to that year. This limit is prorated based on status at the time of study. This prorate of benefits does not apply to course materials.

C. To be reimbursed for a course, evidence of satisfactory completion (grade report) must be submitted. Satisfactory completion means a grade of C (or equivalent) or better for an undergraduate course, and B or better for a graduate course. If no grade is given for a course, a certificate or letter from the school indicating satisfactory completion should be provided.

D. Upon submission of the reimbursement request form (see application procedure) to the Human Resources Department, payment will be made through the Controller's Office within fourteen working days.

E. Special arrangements for reimbursement of partial costs for correspondence courses may be made where the course lasts longer than six months.

V. Prepayment Policy

Prepayment of an amount up to $1,500, but not to exceed 50% of the tuition and fees, can be arranged by way of a payroll advance for all approved courses. The employee will be required to sign an agreement stating that, if the conditions for reimbursement are not met as outlined above, the amount advanced will be settled by way of immediate payroll deduction. If an employee will not be completing a course within one year of receipt of the prepayment, then s/he must provide in writing the circumstances for the delay and expected date of course completion. Without this application for extension, the prepayment will be settled by way of immediate payroll deduction.

VI. Taxability of Benefits

A. Tuition assistance for each of the following is not taxable:

1. Tuition for undergraduate courses taken at an educational organization, or

2. Tuition for courses that are "job-related" as defined by the IRS.

B. The IRS defines a "job-related" course to be a course that directly maintains or improves skills for one's current job or is required by WHOI or by law in order to retain the current position.

C. The IRS currently considers tuition assistance for the following to be taxable:

1. Tuition for graduate courses (that are not taken as part of an undergraduate degree program). Note: graduate courses are only subject to State taxes.

2. Non-tuition expenses, such as application, registration, course materials, library, laboratory, examination and graduation fees; and

3. Tuition for courses not taken at an "educational organization".

D. The IRS defines and "educational organization" as an organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled student body in attendance at the place where its educational activities are regularly carried on. Any non-educational activities must be incidental to the organization's main purpose or providing education.

VII. Tax Withholding

If the course of study falls under a taxable category as defined in the Internal Revenue Code, WHOI is required by law to withhold federal income taxes for these tuition assistance benefits. If taxable benefits are received, federal, state, and Social Security (FICA) taxes will be withheld from the employee's reimbursement check. Federal and state income taxes will be withheld based on the employee's current withholdings on file in the Payroll Office. Social Security (FICA) taxes will be withheld at the rate in effect during the year payment is received. Taxable benefits will be reported as part of annual income on the employee's W-2 statement.

VIII. Leave of Absence for Educational Purposes

A. Employees are normally expected to arrange to attend classes that do not conflict with normal working hours. If a course is available only during working hours, a full-time employee may arrange for absences not to exceed eight hours per week. Such absences must be approved in advance by the Department Chairman/Administrative Manager as appropriate, who must also approve the arrangements to make up the absences. The employee will remain on full-time status, accruing fringe benefits accordingly.

B. If the time absent cannot be made up and does not exceed 20 hours per week, the employee may request up to 20 hours per week as unpaid Educational Leave and still be eligible for full assistance under this plan. Upon approval of the leave by the Department Chairman/Administrative Manager and the appropriate member of the Directorate, the employee's status will change to half or ¾-time, with accrual of fringe benefits accordingly. Upon completion of the course, the employee's status will revert to full-time. (See Educational Leave of Absence).

IX. Application Procedure

A. Application for Employee Education Assistance must be made in advance of enrollment in the course or program that the employee is requesting assistance. A standardized form (available from the Human Resources Department) is to be used. This form requires information about the course or program the employee is planning to follow, an itemized budget showing the full cost and requested amount, and a supporting statement from the supervisor.

B. Upon completion of the form and submission to the Human Resources Department, a copy of the application will be returned to the employee indicating the decision. If approved, the employee will retain the copy and submit it along with evidence of satisfactory completion to obtain reimbursement. If prepayment is requested and approved, the Human Resources Department will arrange for the necessary advance (through the Controller's Office or Procurement depending on taxability).

C. All requests will be processed through the Human Resources Department, which will be responsible for developing a budget, maintaining records, recommending updates in the policy, and final approval of payment.

X. When Benefits End

If an employee leaves WHOI, no reimbursement to the employee will be payable. If the employee received a prepayment, the amount advanced will be settled by way of immediate payroll deduction. If an employee is laid off, reimbursement will be made when courses are successfully completed that were begun before the layoff.