Messages from your Benefits Team

January 1, 2018 Tuition Policy Update

In order to stay competitive and ensure both First Data and owner-associates have the best opportunity to gain from the investment made, we have reduced the eligibility period of one year to 90 days of employment prior to course start date.

 

Taxable Tuition Payments:

In accordance with current federal, state and local withholding regulations, income tax withholding must take place from all taxable tuition payments. The taxation questions answered during the application process are used to determine whether reimbursement in excess of $5250.00 is taxable, per IRS guidelines.  Our tuition reimbursement vendor, Edcor, makes payment, via check, for the gross amount approved (no income tax is withheld). If reimbursement is deemed taxable, First Data is required to withhold the appropriate federal, state and local income tax amounts.  The taxes will be withheld from your current/future payrolls.  To minimize the reduction of net wages in any single pay period, the following accommodations will be made:

  • On taxable tuition payments up to $1000, applicable taxes will be deducted through FDC payroll in the pay period after the tuition information is received from Edcor.
  • On taxable tuition payments from $1001 - $2500, applicable taxes will be deducted through FDC payroll over TWO pay periods after the tuition information is received from Edcor.
  • On taxable tuition payments over $2500, applicable taxes will be deducted through FDC payroll over THREE pay periods after the tuition information is received from Edcor.

 

 

Once you receive your tuition reimbursement check from Edcor, please plan accordingly for the pay periods in which the taxes will be withheld from your paycheck