Fee Waiver

Employee Fee Waiver Programs allow eligible employees to enroll in courses at any California State University (CSU) campus at reduced rates. Courses taken on the fee waiver program must be work-related or part of an individual career development plan.

• Employee Fee Waiver Application (PDF)
• Individual Career Development Plan (DOC)

Dependent Fee Waiver Program allows eligible employees to pass this benefit on to an eligible dependent. The fee waiver benefit may be transferred to only one dependent (spouse or child) unless both parents are eligible employees. In this case, each may have a fee waiver benefit which can be transferred to separate children.

• Dependent Fee Waiver Application (PDF)

Eligible Employee

• Full-time permanent staff;
• Full-time probationary staff;
• Part-time permanent staff;
• Full-time Management Personnel Plan (MPP) employees;
• Temporary full-time staff, if the duration of the temporary appointment or continuous temporary appointments, continue beyond the midpoint of the applicable term; (temporary employees in Unit 8, C99, E99 or M98 are not eligible for a fee waiver)
• Tenured Unit 3 faculty/librarians;
• Probationary Unit 3 faculty/librarians;
• Temporary Unit 3 faculty/librarians with three-year entitlements; and Unit 3 Coaches with at least 6 years of full-time equivalent service.

Eligible Dependent

• Legal spouse or registered domestic partner;
• Child or stepchild who has never been married and is under age 23 or 25* through at least midpoint of the semester/term;
• Child living with employee in a parent-child relationship who is economically dependent upon employee, has never been married and is under age 23 or 25* through at least midpoint of the semester/term;
• Child or stepchild age 23 or above who is incapable of self-support due to a disability which existed prior to age 23 or 25*.

Work-Related Course (WR)

"Work-Related" courses apply to the employee's current job. The appropriate supervisor indicates on the fee waiver application how the course is directly job-related. CSU admission requirements do not apply for work-related courses.

Individual Career Development Plan (ICDP)

An "Individual Career Development Plan" is established by the employee and the appropriate advisor and does not have to pertain to the employee's current position. CSU admission requirements must be met or waived for registration in courses taken as part of the approved Individual Career Development Plan.

Course Limitation

Courses taken under the fee waiver program shall be taken for credit and not audited. Normal academic standards shall be maintained in order to continue participation in this program. Excluded from the fee waiver program are self-supported programs such as Extended Education.

• A maximum of 2 courses or 6 units per term, whichever is greater, may be taken under the fee waiver program.
• An eligible employee on an approved leave of absence may request a waiver of fees for more than 2 courses per term.

Evaluation of Program Participation

Progress reviews are periodically held to assess the value of participation in the fee waiver program. In order to continue in this program, employees must remain in good academic standing.

Application Process | Deadlines

Submit the "Individual Career Development Plan", if appropriate, and the "Fee Waiver Application" to the Human Resources Office for approval by the deadline below. Faculty submit to Faculty Affairs Office. A new fee waiver must be submitted for each term. Contact Admissions & Records/Graduate Programs Office directly regarding matriculation and acceptance to the University as a student.

• Fall Semester: No later than July 30
• Winter Term: No later than November 29
• Spring Semester: No later than January 30
• Summer Semester: No later than March 30 *If applicable*

Fees

See applicable Collective Bargaining Agreement for a list of specific fees waived. Employees/Dependents enrolling in courses in addition to those approved through the fee waiver program, must pay any difference between the amount waived and the full State University Fee.

Class Attendance

• Release time for 1 on-campus course per term may be approved by the appropriate supervisor, providing the operational needs of the department are met. This is determined by the appropriate supervisor.
• If it is determined that release time is not appropriate, the supervisor may request employee adjust work schedule, subject to approval; or
• use leave credits to cover absences for class attendance, subject to approval; or
• enroll in a course scheduled outside of normal working hours.

For faculty, the course(s) may not conflict with scheduled classes or scheduled office hours.

Taxability of Waived Fees

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) and 127] 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.

Taxable and Non-Taxable

Undergraduate fees for employees and eligible dependents 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.

Graduate/Doctorate fees for eligible dependents are taxable pursuant to IRC 117(d).

The table below summarizes taxable and non-taxable courses.

Nontaxable up to $5,250

Imputed income related to participation in the CSU Fee Waiver & Reduction Program, as outlined above, is subject to specific tax rates as follows:

Currently, the flat tax rate is 36.25% composed of:

• 22% Federal Tax (Mandatory) * Subject to Change
• 6.6% State Tax (Mandatory)
• 6.2% Social Security Tax (If the employee is subject to this tax on normal wages)
• 1.45% Medicare Tax (If the employee is subject to this tax on normal wages)

The flat tax calculation of the taxed portion of fee waiver benefit is as follows:

Value of Fee Waiver (above) × Flat Tax Rate = Flat Tax Amount Deducted from Employee Pay Warrant

The imputed income is reported to the State Controller's Office once each term. The reporting is done after census for the term, so there is no adverse tax reporting on imputed when an employee or an employee's dependent drops courses. You will receive a letter if you are subject to imputed taxes. A tax consultant or financial advisor should be consulted for specific tax-related guidance.

**All graduate-level coursework, including the doctoral program, taken by an employee's spouse, domestic partner or dependent child through the employee fee waiver program continues to be reported as taxable income to the employee.

2019 Taxation Changes for Employees Who are Graduate Students

Effective with the 2019 tax year, all employees taking graduate/doctorate level courses will have the value of their fee waivers tracked over the course of a calendar year and will be taxed on the value exceeding the $5,250 threshold. Taxes are 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.