Tuition-reimbursement programs are generally offered to employees with at least one year of service. It is considered a fringe benefit by the IRS and is usually taxable income for the employee. Before implementing a program, consider these questions:

• Do the classes have to be job related?

• How many classes are eligible for reimbursement each semester?

• Does the employee need to receive a specific grade to qualify for reimbursement?

• Will reimbursement be at 100 percent?

• Will paid time off to attend classes be offered?

• Is there a cap on how many semesters an employee may participate?

• Will the benefit be offered to employees earning higher than a bachelor's degree?

Classes are paid for by the employee, not the employer. If the employee qualifies for reimbursement, it is processed after the class has ended and a final grade has been received. Verify with the IRS whether the reimbursement is tax deductible and how to properly reimburse the employee.