What is the schedule for taxing employees for Graduate tuition in accordance with Internal Revenue Code Section 127 and what taxes will be withheld?
In accordance with the Economic Growth and Tax Relief Act of 2001 passed on June 7, 2001, Internal Revenue Service Code Section 127 (employer-provided educational expenses), the value of tuition remission benefits provided to eligible Temple University employees taking graduate courses in excess of the federal threshold of $5,250, are subject to federal income tax withholding. In addition, it is also subject to FICA, Medicare and State withholding.
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