Human Resources
This educational assistance program allows eligible employees to enhance job skills or prepare for a future career by taking classes at any of the 23 CSU campuses, waiving the greater of two courses or 6 units per semester/quarter. Courses must be job-related and/or part of an individual career development plan. The Fee Waiver Program is a negotiated benefit and is subject to change.
Related Documents & Forms
- Units 2, 5, 7, 9 (CSUEU) - Article 22
- Unit 3 (Faculty) - Article 26
- Unit 4 (Academic Professionals) - Article 16
- Unit 6 (Skilled Trades) - Article 27
- Unit 8 (Public Safety) - Article 20
Eligible faculty and staff employees may also transfer their fee waiver benefit entitlement to a spouse, registered domestic partner or dependent child up to age 25. Eligibility is based upon provisions of the collective bargaining agreements.
Tax Implications from Fee Waivers
Generally, undergraduate fees for employees are nontaxable. Graduate/Doctorate fees for employees are nontaxable if expenses do not exceed $5,250 (in a calendar year) pursuant to IRC 117 (d) and 127. Please check the tax status of your fee waiver using the matrix below. If taxable, it is very important that you take this opportunity to calculate your potential taxes.
| Eligible Participant | Course Level(s) | Tax Status |
|---|
| CSU Employee | Undergraduate and Post-Baccalaureate | Nontaxable |
| CSU Employee | Graduate/Doctorate | Nontaxable up to $5,250/year* |
| Spouse or Dependent Child | Undergraduate and Post-Baccalaureate | Nontaxable |
| Spouse or Dependent Child | Graduate | Taxable |
| Employee's Domestic Partner | Undergraduate and Post-Baccalaureate | Taxable |
| Employee's Domestic Partner | Graduate | Taxable |
*Effective with the 2019 tax year, commencing with the Spring 2019 academic term all graduate/doctorate level courses taken by employees, where the calendar year total exceeds the $5,250 threshold will be taxable and withheld from the employee's pay warrant (paycheck). Graduate courses deemed job-related, pursuant to Internal Revenue Code Section 132(d), will no longer be excludable from W-2 wages. Employees may consult a personal tax advisor to determine if courses taken are job-related pursuant to IRC Section 132(d) and include the deduction on their personal tax return.
Tax Estimates
- Estimate the fee waiver value
- Multiply the value of the fee waiver by 36.25% = Flat tax amount deducted from employees wages
- For example, if the total fee waiver value is $8750; the estimated tax is $1268.75 (to be deducted from one or more of the employee's paychecks during the semester).
The dollar value for the waived fees will be reflected on the employee's next pay warrant following receipt of the benefit, and the State Controller’s Office will take deductions for that benefit from that payroll warrant.
A “flat tax rate” will be applied to the amount waived or reduced. Currently, the flat tax rate is roughly 36.25%; and may be adjusted annually. (Federal currently 22%, State 6.6% currently, and if applicable Social Security 6.2% and Medicare 1.45%).
The Fee Waiver Program is a fringe benefit and as such has strict reporting requirements established by the Internal Revenue Service [Internal Revenue Code Sections 117(d), 127 and 132(d)] and the State of California Controller’s Office. The reporting requirements state that the fringe benefit must be taxed in the calendar year that the benefit was received.
Percentage Maximum Semester of Leave or Quarter Units
| Percentage of leave | Maximum semester or quarter units |
| One-fourth but less than one-half | 9 |
| One-half but less than three-fourths | 12 |
| Three-fourths but less than full | 15 |
| Full | Not limited |
Matriculated (Degree-Seeking) Students:
Matriculated students may start registering for classes on their assigned enrollment appointment time. Student’s enrollment appointment time can be found in the CMS Student/HR Student Center. Specific instructions and current information regarding registration can be found in the registration notification emailed to the student’s official CSUMB email address. Please note: To avoid being disenrolled from your classes, registration, tuition, and fees must be paid by deadline. Please refer to the Important Dates and Deadlines website. Students are responsible for staying informed about registration and tuition/fee payment deadlines.
Non-matriculated (not seeking a degree) Students:
- Health and Safety
- University Police
- Wellness RAFT
- Care Team
- Health and Wellness
- Emergency Information
- COVID 19
California State University, Monterey Bay
Call: 831-582-3000
Visit: 5108 Fourth Avenue, Marina, CA 93933
Mail: 100 Campus Center, Seaside, CA 93955
