The Employees Guide to Tuition Reimbursement

Tuition reimbursement, meanwhile, sees employees taking classes at night or on the weekends with some of their educational expenses covered by the organization. Many businesses who start an assistance program find themselves trending toward the middle to offer a mix of monetary assistance and time off to complete educational goals. ADP is a technology and human resources company that provides cloud-based software and services to employers around the world.

And when it comes to offering an enticing benefit like tuition reimbursement, small businesses definitely don’t have to sit this one out. And according to a recent survey from Student Loan Hero, 45% of employees would rather have a student loan repayment assistance program over a 401k. Even more startling, almost 53% of employees would prefer to have student loan repayment assistance over additional vacation.

  1. For these reasons, ADP stood out to us as the best solution for small businesses.
  2. Employees need to articulate how their education will benefit both their career and the business at large, and must provide specific details about their program including course names and expected time to completion.
  3. Hopefully more employers follow the companies below into offering student loan repayment assistance to their employees.
  4. A growing trend in the last few years has been for employers to offer student loan repayment assistance to employees as a benefit.
  5. This eliminates the need for manual data entry, automatically flags potential errors and saves small business owners valuable time by streamlining recordkeeping.

Yes, it’s an extra step, but it’s the only way you’ll know precisely what the plan will cost you and your employees so you can accurately compare the costs with those of competing plan providers. Another potential downside is the poor customer reviews on the BBB website, which notes that ADP has closed nearly 900 complaints in the past three years. Going it alone could be better than dealing with subpar or inconsistent customer support. ADP’s retirement plans come with a range of services and features that small businesses will value regardless of how many employees they have. Examples of traditional benefits include health and dental care, life insurance and retirement savings plans. Another great way to find a company that offers the tuition reimbursement program you want is to speak to friends and colleagues to hear about their experiences with different employers.

Health and Dental plans are provided through Blue Cross/Blue Shield of Illinois. 59% of young workers say that paying off their student loans is a higher priority than saving for retirement. The IRS sets forth three facts that must be satisfied to help establish a program that can meet these requirements. Company scholarships or grants that benefit your employees can be a great incentive. You should consider tuition reimbursement and educational leaves of absence to attract and retain top talent.

Lots of reasons to love working here! To learn more about our benefits:

For example, it’s a good idea to suspend further assistance if an employee can’t complete their initial courses, pending review and reassessment after a set period. It’s also critical to draft policy for educational leaves that allows workers to “borrow” time, which must be paid https://adprun.net/ back via continued service over a set period. Ideally, your corporate environment is appealing enough to encourage employees to invest in a career, but you’re always better served by written policy. This trend creates a fantastic opportunity for organizations seeking top talent.

Why Do Employers Offer Tuition Reimbursement?

Otherwise, ADP Strategic Plan Services provides fiduciary and investment services. Employer-financed retirement plans help to secure a steady money flow later in life. Automatic Data Processing, Inc. offers defined benefit pension plans and defined contribution pension plans. Employees at businesses with defined benefit pension plans collect a fixed sum when they retire. With a defined contribution pension plan, companies help workers save and invest for retirement. ADP offers many types of employee retirement plans, including traditional 401(k), individual or solo 401(k), SIMPLE IRA, safe harbor 401(k) and Roth 401(k).

New employees are immediately eligible for group term life insurance for coverage equal to two times annual salary, rounded up to nearest thousand dollars, with a maximum benefit of $1,000,000. NORC provides tuition reimbursement up to $5,250 per calendar year for undergraduate and graduate courses after 6 months of eligible employment. NORC also offers employees an opportunity to enroll in professional certification courses, seminars, conferences and continuing education courses as the professional development budget permits. If your company offers any type of student loan repayment assistance program, you need to be taking advantage of it. Currently, Congress is considering changing student loan repayment assistance to be a tax-free benefit . If Congress were to move these benefits to being tax-free, you could likely see a much larger number of companies offering this benefit.

Is Tuition Reimbursement Taxable?

However, offering this benefit, even if it’s modified to fit a small budget, shows a strong commitment to employees and sends a message that you’re invested in their long-term potential. New employees are immediately eligible for group health and/or dental insurance. Vision insurance is available on the first of the month following date of hire. Health insurance options include a Preferred Provider Option and a Health Maintenance Organization . Dental insurance options include a Network Plan and a Traditional Indemnity Plan.

Adp Benefits

But benefits change over time, so make sure you confirm that you have the most up-to-date information. You can typically ask a recruiter or HR representative during an interview process or once you get an offer. Employer-paid tuition reimbursement adp tuition reimbursement benefits and policies vary depending on the company. But basically, tuition reimbursement is when an employer pays a percentage or flat amount per year of tuition—and sometimes other costs—for an employee seeking further education.

Everything You Need to Know About Employer-Paid Tuition Reimbursement

And while offering tuition reimbursement can be a factor that sways a top candidate’s decision to work at your company – it can also be the thing that keeps them loyal to you – and helps keep your company in business. Sites like Straighterline.com, Lynda.com, eCornell.com, and CodeAcademy.com provide affordable ways for people to receive training and college credits for less money than a brick-and-mortar university would charge. Including sites like this as options in your program will ensure that employees feel they have a wide variety of quality options to continue their education – while staying within your budget. When it comes to helping employees advance their academic goals, you’ve got two broad options — an educational leave of absence or tuition reimbursement. In the first case, employees are given time off from work to pursue their studies, but have to pay their own way through school. When they’re done they come back to a guaranteed position and likely a raise thanks to new credentials.

“When employees are asked the reasons they stay or leave a company, it’s not always about pay,” says McFarland, whose background includes administering tuition reimbursement programs. But when you receive a signing bonus, you receive it and spend it and it’s gone.” Meanwhile tuition reimbursement offers employees a reward that can serve them (and the company) for the long term. If you’re a business owner rolling over an existing retirement plan, the Document tab in the ADP portal clearly outlines what forms you need to fill out. The Communication tab lets you know if your employees have been notified of the plan, while the Activate tab tells you when your HR staff will be trained on the plan and when payroll is set up. We like that the dashboard also includes target dates to keep you on track with your plan implementation. Another great feature is that once the system is launched, employees can enroll on demand and employers can send a text to each staffer for text-to-enroll capabilities that encourage participation.

You can also make finding a company with a tuition reimbursement program a priority in your job hunt by using The Muse to filter your search to find jobs only at companies that offer tuition reimbursement. The employee receives much-needed financial support to further their education, minimizing their debt/out-of-pocket expense,” McFarland says. And the employer gets value from the education and skills a worker gains from their education (along with a tax-savings benefit).

About Author

client-photo-1
Iserbia