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FAQ's

General Questions updated 2006

These frequently asked questions, combined with the information on pages 3 and 4 of the Staff
Fee Privileges Approval Form, will answer most questions about the staff fee privileges benefit available to eligible OUS staff and dependents. For additional information, contact the PSU benefits specialist at 503-725-4926.

• Staff Fee Approval Forms for family members should be submitted to the employee’s Human Resources office two weeks prior to the start of classes.
• Staff members may submit their Staff Fee Approval Forms up to two days prior to the start of classes.

Human Resources offices will send all approved staff fee forms to the campus enrollment offices before the first day of classes. The universities reserve the right to deny staff fee rates for late submission of approval forms. Denials may be appealed to the university.

Q: What are Staff Fee Privileges and Who is Eligible?
A: Oregon University System employees appointed at half-time or more (not including temporary employees, graduate assistants, and other student employees) may register for class work offered by the universities in the Oregon University System, at special rates, for a maximum of twelve (12) hours of credit per term. Course enrollments must be approved by an employee’s supervisor or manager, and may not take precedence over the performance of an employee’s duties.

Q: Are staff members required to submit Staff Fee Approval Forms prior to the first day of classes when taking classes themselves?
A: Yes. The expected number of enrollments makes the cutoff date necessary to complete processing. Beginning Fall 2004, the deadline for staff members to submit Staff Fee Approval Forms is two days prior to the start of classes.

Q: What is the staff fee rate for tuition?
A: Tuition and, consequently, staff fee rates vary by campus. The staff fee rate is 25% of the resident undergraduate tuition rate, rounded to the nearest dollar, for both undergraduate and graduate credits.

Semester rates, where they are used, are 150% of the staff fee (term) tuition rate rounded to the nearest dollar. Put another way, the staff fee rate for courses offered on a semester basis is 37.5% of the applicable undergraduate tuition rate per credit hour.

You need to confirm the staff fee rate for classes with the tuition assessor’s office at the campus where classes will be taken. Additional information about staff fee rates can be found in the Academic Year Fee Book.

Q: Do I have to pay all of the fees students normally pay if I use my staff fee privileges myself?

A: Staff members are required to pay:
1) Technology Fees based on the number of credit hours taken;
2) Matriculation Fee for admitted students (does not apply to Community Education programs);
3) Study Resource Fees;
4) Course-specific fees (described in the host university's schedule of classes);
5) Late Registration and Change of Registration Fees (described in the university's Schedule of Classes);
6) Energy surcharges, subject to the rules of the university where classes are taken.

Staff members are not required to pay:
1) Building Fees;
2) Health Service Fees;
3) Incidental Fees.

Q: May I use staff fee privileges to take classes at more than one university in the same term?
A: Yes. If you are taking classes at more than one campus during a term, you may use staff fee privileges at each one, subject to each university’s tuition rate and other applicable rules. If you take more than 12 hours of classes, however, your employing (home) institution, accepts staff fee rates first, and the non-employer (host) institution will charge you regular tuition rates for classes in excess of those covered by staff fees.

Q: If a combination of graduate and undergraduate level courses is taken, how is the staff fee determined?
A: To provide the highest value for staff fee privileges, graduate level courses are offset by the staff rate first, before the staff fee rate is applied to undergraduate courses.

Q: If I use Staff Fee Privileges, may I also audit courses?
A: Yes. Staff members may audit courses in addition to using staff fee privileges. Institutions are required to maintain a record of courses audited, and staff members must indicate audited courses on the Staff Fees Privileges Approval Form when auditing in conjunction with other courses at staff fee rates.

Q: Must I get my department's approval to use staff fee privileges?
A: Yes. Your department or supervisor must approve your use of staff fee privileges to ensure that your department and job duties will not be affected by the number of credit hours you request.

Transferring Staff Fee Privileges to a Family Member

Q: What is the staff rate for tuition benefits available to a family member?
A: Beginning Fall Term 2002, a qualified family member may take up to twelve (12) credit hours per term at the staff instructional fee (tuition) rate plus other applicable fees. Staff fee rates vary by teaching institution and should be confirmed with the institution where classes will be taken.

The staff fee rate is 25% of the resident undergraduate tuition rate, rounded to the nearest dollar. Semester rates, where they are used, are 150% of the resident undergraduate per term tuition rate, rounded to the nearest dollar. You will need to confirm the staff fee rate for classes with the tuition assessor’s office at the campus where classes will be taken.

Q: What is the definition of a family member?
A: For the purposes of transferring staff tuition rates, a family member is a spouse, a domestic partner, or a dependent child of the employee or domestic partner.

Q: How does the university determine whether my family member is eligible for the staff tuition rate?
A: You must certify in a signed statement that your family member is eligible. For a spouse, you certify that you are legally married; for a domestic partner, you complete and submit an Affidavit of Domestic Partnership with the initial enrollment form; for a dependent child, you certify that your child qualifies as your dependent for tax purposes. You may be required to submit proof to support your certification, as requested by the university.

Q: Who qualifies as a dependent child for purposes of receiving transferred staff fees?
A: Dependent children qualify for transferred staff fee privileges under the definition in Internal Revenue Code section 151(c)(3). The code defines a dependent child as the son, daughter, stepson, or stepdaughter of the taxpayer. If you have questions about whether your child qualifies as a dependent, consult your tax advisor.

Q: How does the OUS define a dependent child who is eligible to receive staff fee rates?
A: IRS Section 151(c)(3) defines a child as a son, daughter, stepson, or stepdaughter of the taxpayer.
• Legally adopted children of the employee, the employee’s spouse or domestic partner qualify as dependent children.
• A dependent child of the employee’s domestic partner.
• Additional rules apply in the case of children covered under multiple support agreements as stated in IRC 152(e).
• A dependent child who has not reached age 24 by the close of the calendar year.
• A dependent child who did not provide more than one-half of his/her own support for the taxable year.

Q: I have a step-son and I personally have no custodial rights, but my wife does and we list him as a dependent on our taxes. Does he qualify?
A: As long as he qualifies as your dependent child as well as your wife's for tax purposes, he is your dependent child for purposes of this program.

Q: May my child who is a high school student use my staff fee privileges to enroll in university classes?
A: Yes, if your dependent child meets the enrollment requirements of the university where classes are taken, your transferred staff fee privileges may be used to reduce tuition.

Q: What is the maximum number of credit hours a family member can take at the staff rate each term?
A: The maximum is twelve (12) credit hours per quarter.

Q: May I transfer my benefit to more than one family member during a given term?
A: No. Staff fee benefits may not be subdivided among family members during a term.

Q: When were employees first able to transfer their staff rate for tuition benefit to family members?
A: Family members were able to transfer staff fee privileges to their family members beginning Fall Term 2000.

Q: If I allow a family member to use my staff rate for tuition benefit, may I also use it the same term?
A: No. A maximum of twelve (12) hours per term may be used, and the benefit may not be subdivided between family members during a term.

Q: If I transfer my staff rate for tuition benefit to one of my family members for one term, can I use it myself the next term?
A: Yes. You will need to complete a new approval form each term or semester, and may change the qualified recipient each term or semester.

Q: May I transfer my benefit to a family member to use at another Oregon University System institution? If yes, which form do I use and where can I get the form?
A: Your family member may use your staff fee privilege at any of the Oregon public universities except OHSU. The same approval form is used by all of the universities and can be printed directly from the OUS website at http://www.ous.edu/benefits/stafffeepriv.htm. You may also pick up a form at your campus Human Resources office.

Q: My spouse and I both work for the Oregon University System. May we combine our staff fee privilege so that our child would receive 24 credit hours at staff tuition rate?
A: No. An employee or transferee may use staff fee benefits only once per academic term, limited to twelve (12) academic credits per term.

Q: My son and I both work for the Oregon University System. May I transfer my staff fee privilege to him for his own use, so he can transfer his staff fee privilege to his own dependent child?
A: A staff member may not use and transfer staff fee privileges during the same term or semester.

Q: If I transfer my staff fee privileges will it affect financial aid for my family member?
A: The value of the family member's reduced tuition is considered a resource available to the family member and is added into the calculations for determining financial aid. It may affect the award or amount of award of financial aid. Contact the campus financial aid office for more information.

Q: Do staff rates apply if the person enrolling in classes has not met residency requirements?
A: Yes. Family members of staff who work at least half time already may enroll as students at resident fee rates. Staff fee privileges are not affected by residency.

Q: Must family members pay all of the fees students normally pay?
A: Yes. Staff fee privileges reduce only the tuition for the family member. All student fees must be paid by your family member. All mandatory enrollment fees apply, except for courses taken on audit status.

Q: May staff fee privileges be used for "on-line" classes?
A: If a program is eligible for staff fee privileges, courses may be taken on-line or in the traditional classroom setting. On-line delivery of a class, however, is different from a distance education course that is subject to Self-Support Tuition and Fees. Ineligible distance education classes are identified on the list of Programs Excluded from Staff Fee Privileges at http://www.ous.edu/benefits/stafffeepriv.htm.

Q: May my family member audit courses?
A: Yes. Eligible family members may audit courses in addition to using transferred staff fee privileges during a term. Only one person in a family, including the staff member, may audit or use staff fee privileges during a term or semester. Because universities track workload for audited courses, family members must provide a completed Staff Fee Privileges Approval form to the employee's campus Human Resources office in order to audit. Space availability and the instructor's approval are required just as they are for staff members.

Q: Are fees assessed to staff or family members/domestic partners who audit courses?
A: No. No fees are assessed to audit a course.

Q: For a non-resident, how are staff fees calculated?
A: Staff fee rates for up to 12 credit hours per term are based on resident, undergraduate rates for eligible non-resident family members. A non-resident, qualified family member or same-sex domestic partner enrolled for more than twelve (12) credits in one term pays for additional credit at the per credit tuition rate applicable to resident graduate and undergraduate students. A non-resident, opposite-sex domestic partner pays non-resident rates for credits in excess of the maximum per term or semester.

How To Transfer Staff Fee Privileges

Q: As an employee, do I have to complete a form each term to request that my staff rate for tuition benefit be transferred to a family member?
A: Yes. The Staff Fee Privileges Approval Form for Staff and Family Members must be completed each term. You can print the form directly from http://www.ous.edu/benefits/stafffeepriv.htm. Beginning Fall 2004, family members’ Staff Fee Approval Forms must be submitted to Human Resources two (2) weeks before the first day of classes to ensure enrollment offices have them prior to the start of classes. When enrolling for undergraduate courses, the Staff Fees Approval Form may be turned in before a family member officially registers for classes. These enrollment deadlines are described at the top of the Staff Fee Privileges Approval Form.

Q: Must I get my department's approval to transfer my staff fee privileges to my family member?
A: No. You do not need department or supervisor approval to transfer staff fee privileges.

Q: Are there any exceptions to the requirement to have completed application for Staff Fee Privileges before the first day of classes?
A: Staff members and their family members are required to adhere to the enrollment deadlines when they are applying to host institutions (universities other than the staff members’ employer). The rules of their employing (home) institution apply when classes are taken at the staff member’s home institution. The universities reserve the right to deny staff fee rates for late submission of approval forms. Denials may be appealed to the university where classes are taken.

Tax Effects of Staff Fee Privileges

Q: Are graduate tuition reduction amounts considered taxable income?
A: Beginning in 2002, graduate tuition reduction amounts up to $5250 in a calendar year are not taxable to the employee, provided they are used only by the employee (not a family member), under Internal Revenue Code (IRC)127. This change was effective winter term 2002, as a result of the passage of EGTRRA (the Economic Growth and Tax Relief Reconciliation Act of 2001).

Q: Is educational assistance to family members enrolled in advanced degree programs or graduate level classes for credit treated as taxable income?
A: Family members’ graduate tuition reduction amounts, which are governed by IRC 117, are taxable. When a family member takes graduate or advanced degree programs using staff fee privileges, it is considered taxable income for the employee.

Q: How are applicable taxes collected?
A: The host university (where classes are taken) reports the number of credits and value of the tuition reduction to the home university (where the sponsoring employee works). The amount of tuition savings is taxed as imputed income to the employee.

Domestic Partner Questions

Q: Is the tuition reduction I transfer to my domestic partner considered taxable income for me?
A: You pay federal taxes on the value of the tuition benefit for both undergraduate and graduate tuition for your domestic partner.

Q: Is the tuition reduction I transfer to the child of my domestic partner considered taxable income for me?
A: You pay federal taxes on the value of the tuition benefit for both undergraduate and graduate tuition of a stepchild who is the natural or adopted child of your domestic partner; if your domestic partner’s child is also your child, or if you have adopted the child, the tuition benefit is not taxable.)

Q: I am transferring my staff fee privileges to my domestic partner to take classes. Do I have to pay an imputed tax on the value of the benefit? If yes, how will this work?
A: You pay federal taxes on the value of the tuition benefit for both undergraduate and graduate tuition for your domestic partner. The dollar value of the tuition reduction is reported to your employing university, and taxes are withheld based on this "imputed income". You do not see the tuition reduction as a pay increase on your check; the tax withholding for the value of the benefit is all that is shown. State and federal taxes, plus Social Security withholding is withheld on the value of the benefit.

Q: Does the imputed tax apply to both same and opposite sex partners? I thought same gender partners were not required to pay state tax on the value of their partner's benefits.
A: Federal tax is applied to domestic partner benefits for all domestic partners -- either same or opposite sex partners. The university system currently withholds both state and federal taxes for all domestic partners. However, staff fee privileges for a same-sex domestic partner taking undergraduate classes may be adjusted on the employee's state of Oregon return as a non-taxable benefit under Oregon code 305. For assistance in determining correct tax reporting and how to adjust your return, consult your tax advisor.

Q: Are my domestic partner's children eligible to take classes at staff rates?
A: If your domestic partner's children are also your dependents for tax purposes, you may transfer your staff fee privileges to them. However, unless you have adopted your partner’s child(ren), the benefit is taxable at both the state and federal level.

Q: Why is it necessary to identify same-sex and opposite-sex domestic partners on the approval form?
A: Human Resources Benefits Officers use this information for one purpose only, to apply the correct imputed taxes for the employee transferring the benefit.