Liberty provides a very generous educational benefit for employees, their spouses and qualifying dependent children.
- Allows an eligible dependent or spouse of a benefited employee to earn up to a Doctoral degree at Liberty University (some programs excluded).
- Benefited employees may use upon their hire date.
- An eligible dependent is defined as a spouse or an unmarried child or stepchild.
- DGIA will cover until the end of the academic year in which the child turns age 27.
- Salaried & Hourly – up to 18 credit hours per academic year of tuition free classes at LU.
- Salaried & Hourly – Up to $1,500 toward approved courses at other schools.
- Benefited employees may use this benefit upon their hire date.
CE/DGIA Tax Update FAQs
Please note- this FAQ is related to tax liability withholdings applied to Spring 2023 and forward.
As registration opens for the Spring 2023 term, Human Resources has partnered with Student Financial Services (SFS) to introduce changes to how taxes are collected on Continuing Education (CE) and Dependent Grant-In-Aid (DGIA) benefits. Moving forward, taxes that employees owe on CE and DGIA benefits will be charged to the employee or their dependent’s student account and can be paid as part of the Financial Check In (FCI) process or a one-time account payment in ASIST. Below is a list of frequently asked questions about how taxes are charged on CE/DGIA.
How much of my CE/DGIA benefits are considered taxable?
The Internal Revenue Service (IRS) requires Liberty University to withhold taxes on any education benefits provided to our employees using CE in excess of $5,250 per year, and that Liberty also withhold taxes on every dollar an employee’s dependent uses in DGIA at the Graduate and Doctoral level.
When will I be required to pay the taxes for these benefits?
Moving forward the student will be required to pay the taxes for classes as you or your dependent take them. A tax liability will be automatically assessed at the time your CE/DGIA benefit is posted. The tax liabilities for the benefits you or your dependent are receiving in a given semester will be applied to your student(‘s) account and you will be required to pay these taxes as part of Financial Check-In or a one-time account payment in ASIST.
Due to the $5,250 allowance for CE, it is anticipated that the tax withholdings will increase throughout the calendar year.
I’ve had money withheld from my paycheck in the past to cover my tax liabilities for CE/DGIA can I still do that?
Beginning Spring 2023, you will no longer be able to set up a payroll deduction to pay your tax liabilities for CE/DGIA. The student will be able to make a one-time payment in ASIST or set up a payment plan within Financial Check-In (FCI).
Why are these balances being moved to Student Financial Services?
Our goal with this new process is to give our employees more tools to pay these liabilities and increase visibility to tax liabilities when CE/DGIA benefits are being used.
Whose student account will the taxes for my dependent’s tuition be on?
The taxes will be applied to the student who is receiving the benefit. So, if your dependent is receiving DGIA for graduate courses, the taxes will be applied to your dependent’s student account. If you as an employee are receiving CE for graduate courses, the taxes will be applied to your student account.
Will the historic balances be added to my student account or my dependent’s student account?
Future communication will be released related to outstanding tax balances owed at a future date.
When is this change taking place?
This change will impact all CE/DGIA benefits that are being applied to the Spring 2023 term and forward. As your CE or DGIA is approved and applied to your financial aid offer in ASIST, you will see these taxes applied to your student account. Historic balances will be transferred in early 2023, and future communication will be provided.
Where can I view my current remaining tax balance?
Balances through 2022 are visible in the CE/DGIA portal.
Education Portal Link: https://apex.liberty.edu/apex/f?p=261
You may still set up a payroll deduction now to pay off your balance or reduce the amount that will be added to your student account or make payment at Human Resources with a personal check or money order.
Will I be able to register and complete classes if I have a tuition tax balance on my student account?
Tuition tax balances follow the standards for student account balances and must be paid in full or be in a payment plan before the start of the next term. If you have any unpaid balance, there will be a hold that prevents registration.
Do I still need to submit CE/DGIA forms in order to receive tuition benefits?
Yes, the process for receiving CE/DGIA benefits still require you complete the CE/DGIA forms.
Is there a $50 fee for setting up a payment plan for the taxes owed when I complete my financial check in?
The tuition taxes that are added to the student’s account will be processed the same as any other fees associated with financial check in. If a payment plan is utilized for any fees at financial check in the $50 payment schedule fee would be applied.
If the tuition benefit is considered my income, why is it appearing on my dependent’s financial check in with student accounts?
The tuition taxes are appearing on the student account because it is tied to the courses in which they are enrolled and provides greater payment opportunities for payment by you and your dependents. The tuition benefit is still an employee benefit and will be added to the employee’s W-2 earnings and taxes in the calendar year in which they are incurred.