TAP and 529 Plan

Please see University System of Georgia TAP Policy for more details.

• An employee may seek approval to enroll in up to nine (9) academic semester credit hours for each of the three designated semester periods: Fall Semester, Spring Semester, and Summer Semester.
• Employees participating in TAP taking classes at KSU will be allowed to enroll during their normal designated registration period.
• The Tuition Assistance Program (TAP) allows eligible employees to attend classes at any USG institution under a waiver of tuition and most fees.
• The following fees are waived by all USG institutions for TAP attendees: tuition, student late registration fee, student technology fee, student health insurance fee, student activity fee, student athletic fee, and student recreation fee. TAP attendees, whose student health fee, student activity fee, athletic fee and student recreation fee are waived, are ineligible for the services sponsored by these fees unless the fees are paid separately. Eligible online courses taken through KSU will also have "etuition fees" waived.

• Apply for enrollment to the teaching institution of their choosing by following normal admissions procedures, paying any applicable admissions fees and subsequently be accepted for matriculation.  If you have not been accepted as a student at the teaching institution prior to the TAP deadline date, you will still need to submit your TAP application by the deadline date even though you have not admitted.  Include a note with your TAP application that you are currently in the approval process. You must still complete the TAP application by the applicable deadline.
• Be continuously employed in a full-time benefited position (1.0 FTE) for at least six months prior to the applicable TAP deadline for that semester.  Those employees completing their continuous six months of full-time, benefits eligible employment after the TAP deadline are not eligible until the subsequent semester.
• Have the approval of their supervisor
• Submit a new TAP application to their home institution (employer) by the designated deadline for each term in which the waiver is desired.  For KSU employees, TAP applications are submitted through an online application process which includes electronic routing to the employee's supervisor on record with Human Resources.
• ALWAYS wait to register for courses until the designated employee registration period established by their teaching institution - (Very important! Those who register prior to the designated time period will forfeit TAP eligibility.)
• Receive a grade of “C” or better in each class where a TAP waiver has been applied – (Grades below “C” or “withdrawals” will result in TAP ineligibility for the following term. Those receiving “incomplete” grades will be given one additional term to meet this requirement.) 

Due to the current shortage of nursing faculty in the state of Georgia, the Tuition Assistance Program is available to Part-Time Nursing Faculty members seeking a graduate degree in Nursing. Any part-time nursing faculty member taking advantage of this program shall be required to work full time within the University System at least two (2) years following receipt of the graduate degree in Nursing (or Education, if such would allow one to teach Nursing at the University level).

• The utilization of this program by part-time nursing faculty shall end in 2015, unless such utilization is extended by further action of the Board;
• Participation in the Tuition Assistance Program for Nursing Faculty shall be available to part-time nursing faculty who have successfully completed at least six (6) months of employment, as of the date of the Tuition Assistance Program application deadline for the desired academic semester.
• Complete the Part-Time Nursing Faculty TAP Application and return to HR by the TAP deadline for TAP Coordinator approval.

Changes to the TAP Policy related to taxes were announced by the USG in November of 2022 and are effective for the calendar/tax year 2022 going forward:

• The TAP benefit is no longer taxable for TAP participants taking undergraduate courses, even those who exceed the formerly used IRS $5,250 taxable benefit limit.  
• The TAP benefit continues to be taxable for TAP participants taking graduate and doctoral level courses over the annual $5,250 limit unless the individual course is approved for a tax waiver.
  
  • In order to be eligible for approval of a tax waiver, the individual course would need to improve the employee’s knowledge or performance in their current job duties. 
  • If the education is to meet the minimum educational requirement for the current job, to qualify for a promotion or salary increase, to qualify for a transfer or is being taken as a hobby, it would NOT be eligible for a tax waiver– and taxes would apply on the benefit over $5,250. 
  • If requested, hiring managers may be asked to articulate in writing the applicability of the course content in relation to the employee’s job functions.    
• View the updated TAP policy

When applicable, KSU is required to account for that benefit by increasing taxable wages during the calendar year in which the benefit was received.  Calculation of taxable wages includes federal and state income tax withholdings as well as flat-rate FICA/Med and social security taxes.

When taxable tuition waivers exceed $5,250, it is extremely likely that this increase in taxable wages will result in a decrease of net pay.  The amount of decrease in take-home pay is specific to each employee based on a combination of factors such as:

• Amount of additional taxable benefit (tuition dollars waived over $5,250)
• Annualized salary rate
• Pay frequency
• Personal choices for state and federal tax withholding rate

This increase is taxable wages, and those taxes can be deducted from an employee’s paycheck at any point in the year as confirmation of the waiver amounts are determined.  Payroll will send notifications in advance when the taxable amount is added to wages.  KSU is not able to provide specific information regarding individual impact.  A tax professional should be consulted for further information and explanation concerning taxable wages and tuition benefit implications.  KSU’s EAP provides resources for financial and tax consultations.

Employees participating in TAP are encouraged to monitor their tuition charges within the student portal each semester and promptly contact the Bursar’s Office at their school of enrollment for an explanation of tuition amounts.

Each term, applications for TAP waivers and any associated Graduate Student Tax Waiver Application must be approved by the supervisor and submitted to the TAP coordinator at the home institution (employer) by the following deadlines:

• Fall Semester – July 15th (includes Decembermester)
• Spring Semester – November 15th
• Summer Semester – April 15th (includes Maymester)

• University System of Georgia TAP Policy
• TAP Application Portal
• Part-Time Nursing Faculty TAP Application Form
• TAP Frequently Asked Questions
• System Wide Employee TAP Registration Dates
• USG TAP Coordinators