Employee Tuition Assistance Program FAQ

No. When faculty or staff register for Clemson classes, a report is sent to the Office of Human Resources (OHR) and OHR members then reviews eligibility for the benefit and notifies employees of their eligibility.

No, if faculty and staff members are eligible for this benefit, the Employee Tuition Assistance Plan (ETAP) benefit offers a 100 percent waiver of all mandatory academic fees, activity/program fees, differential fees, and lab fees for up to six (6) hours per academic term.

Note, if a faculty or staff member exceed the IRS allowable threshold of $5,250 per calendar year, the University is required to establish payroll tax withholdings from their paychecks to offset any tax liability.

Academic terms are spring, fall and summer. Summer courses held throughout the summer are considered one academic term and are restricted to a total of 6 hours.

No, this benefit is not available to family members of employees, including spouses or children.

The benefit applies to all undergraduate and graduate courses within programs offered by Clemson University, except the Clemson Study Abroad Program.

No, the benefit can only be applied toward classes and programs available through Clemson University.

In addition to meeting all other eligibility criteria, employees must satisfy 12 consecutive months of employment at Clemson University in a faculty or staff position to be eligible for this benefit. In other words, the employee must have at least 12 consecutive months of employment with Clemson and met all other eligibility requirements as of the last day to add classes for the specific semester the employee wants to use the benefit. Note: To gain eligibility for the ETAP during any summer session, a faculty or staff member must meet the criteria above by the last day to register for a class as determined in the first summer session.

No, it is not permitted for faculty or staff to hold a graduate assistantship and a full-time faculty or staff position. Employees must choose between the combination of Clemson University employment and classes or the combination of an assistantship and classes.

Special Note - Faculty and staff employment will always be considered participating employees' primary affiliation followed by a secondary affiliation as a student with Clemson University.

Faculty and staff members have the same opportunity to participate in programs of study or courses of study as any other student applying for acceptance, regardless of eligibility for the benefit.

The benefit waives 100 percent of all mandatory academic fees, activity/program fees, and lab fees for up to 6 hours per academic term.

The benefit does not cover books, supplies, or other non-academic fees. In addition, the benefit does not cover costs associated with tuition over and above six credits per academic term (fall, spring and summer).

Note, if a participating employee exceeds the IRS allowable threshold for graduate tuition in a calendar year, the University is required to establish payroll tax withholdings from their paychecks to offset the FICA tax liability. The current IRS allowable threshold is $5,250.

Faculty and staff are not required to reimburse Clemson for a semester’s courses if they become ineligible after courses begin. However, their benefit does not continue if they become ineligible (separate or move to a position no longer eligible for the benefit) before a semester’s courses begin.

OHR will notify Student Financial Services on the participating employee's behalf. No further action is required by faculty or staff.

Please contact Student Financial Aid (864-656-2280/finaid@clemson.edu).

Employees who have questions regarding registration should contact Clemson Registration Services (regserv@clemson.edu/864-656-2305).

Enrollment in a graduate program through the ETAP program may result in taxable income if it exceeds the IRS threshold. Under the current tax code, combined ETAP benefits valued over $5,250 per calendar year are considered taxable wages and are reportable on W-2s. Once a faculty or staff member exceeds the $5,250 threshold for the calendar year, the University will establish required tax withholdings (federal, state and FICA). 

Tuition paid for undergraduate courses is not taxable. 

ETAP benefits are taxed at 35.65 percent, made up of 22 percent for Federal, 6 percent for State, and 7.65 percent for FICA.

Tax regulations require the University to report and withhold in the calendar year the benefit is earned and qualified as taxable.  

Required tax withholdings to satisfy this tax liability will be established each semester in which total tuition value exceeds $5,250 for the calendar year. 

ETAP benefits are taxable in the semester in which the total taxable value exceeds $5,250. 

For ETAP participants in Summer 2026, required tax withholdings will begin on July 31, 2026, for participants whose calendar year tuition value (Spring and/or Summer semesters) exceeds $5,250.  

These tax withholdings will be spread evenly across the remaining paychecks in 2026 (11 paychecks). 

For Fall participants whose calendar year tuition value (Spring, Summer and Fall) exceeds $5,250, required tax withholdings will begin on September 30, 2026. 

Graduate tuition value in excess of $5,250 is considered taxable.

Required tax withholdings are calculated as 35.65 percent of taxable tuition value.

For example:

Spring 2026 Semester

• Spring tuition value: $5,000
• Total tuition value to date: $5,000
• Taxable tuition value (total value greater than the $5,250 IRS threshold): $0
• Required tax withholdings (35.65 percent of taxable value): $0
• Per paycheck tax withholdings: $0

Summer 2026 Semester

• Spring tuition value: $5,000
• Summer tuition value: $5,000
• Total tuition value to date: $10,000
• Taxable tuition value (total value greater than $5,250 IRS threshold): $4,750
• Required tax withholdings (35.65 percent of taxable value): $1,693.38
• Per paycheck tax withholdings: $153.94, over the course of 11 paychecks (beginning July 31)

This ETAP tax liability calculator (EXCEL) is available to assist participants in calculating their tax liability for 2026.

For 2026 ETAP participants, required tax withholdings will begin on July 31, 2026, for individuals whose combined tuition value for Spring and Summer exceeds the IRS threshold of $5,250. The required tax withholdings will be spread over the 11 remaining paychecks in 2026.

Required tax withholdings may increase in late September for these individuals if they take Fall classes that increases their total tuition value for the calendar year.

For individuals whose Spring and Summer tuition value did not exceed $5,250, but their Fall tuition causes them to exceed the IRS threshold, required tax withholdings will begin on the September 30 paycheck and be spread over the remaining seven paychecks in 2026.

Specific tax withholdings are determined by course load, total course cost, and enrollment periods.

Early withholding deductions will no longer occur.

Early withholding balances for applicable employees will be applied to the taxable tuition value when it is assessed in July and September to reduce the total tax withholdings required.

Early withholding balances for those who previously participated can be found on the June 30 paystub (in PeopleSoft) in the “Hours and Earnings” section, listed as “Non Cash Fringe Benefit – Edu". The early withholding balance will be listed in YTD Earnings.

Direct ‘taxable value’ inquiries to Payroll through ServiceNow.