COMPTROLLER'S SEAL STATE OF CONNECTICUT
STATE OF CONNECTICUT
NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

MEMORANDUM NO. 95 - 36

May 26, 1995

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative and Fiscal Officers, Business
Managers, and Payroll and Personnel Officers
Subject: Reportability of Reimbursed Employee Tuition Payments
  1. AUTHORITY

    Effective December 31, 1994 the Internal Revenue Code (IRC) Section 127, "Educational Assistance Programs", expired. However, IRC Section 132,"Exclusion of Certain Fringe Benefits from Gross Income", does apply to the following educational reimbursements.

  2. DETERMINATION OF REPORTABILITY

    Please use the following guidelines when determining reportability.

    1. Non-Reportable

      If your education is not required for your current position and it maintains or improves skills needed in your current position, it is non-reportable.

      This includes refresher courses, courses on current developments, and academic or vocational courses.

    2. Reportable

      Courses taken to meet the minimum educational requirements for your current position are reportable.

      Courses that are a part of a program of study that can qualify you for a new trade or business are reportable even if you are not seeking a new job.

      Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are reportable because that qualifies you for a new profession.

  3. PROCESSING PAYMENTS
    1. Non-reportable payments are submitted on form CO-17XP Employee Voucher to Central Accounts Payable for processing.
    2. Reportable payments are paid through the payroll system using D/OE code 2G - "Reportable Tuition.
  4. GENERAL

    The State Accounting Manual, Expenditure Section, regarding "Reportability of Educational Expenses and Reimbursements" will be revised with the next update.

  5. QUESTIONS

    Questions may be directed to the Office of the State Comptroller as follows:

    Accounts Payable Procedures:

    Central Accounts Payable Division, 566-8979 or 566-3895.

    Payroll Procedures:

    Forms and On-Line: Central Payroll Division, 566-5428;

    Remote Job Entry: Computer Services Division, 566-3214.

    Memorandum Interpretation:

    Accounting Systems Division, 566-5337.

NANCY WYMAN
STATE COMPTROLLER

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