UC Davis Health is proud to offer tuition reimbursement to eligible employees through the Staff Tuition for Education Program (STEP).
STEP is administered by the Human Resources Wellbeing unit and supports eligible employees pursuing accredited degree programs and certain accredited vocational and specialized certificate programs that prepare candidates for skilled allied health positions.
STEP at a Glance
- Up to $4,000 per calendar year for eligible educational expenses paid by the employee
- $16,000 lifetime maximum
- Amounts over $4,000 do not roll over to the next calendar year
- Submit requests within 60 days after course completion
Funds are subject to change and may be impacted by budgetary or other considerations. Please note that only submissions complying with the STEP Guidelines provided below will be considered.
Preauthorization of course of study is not required. Reimbursements will not be provided for ineligible programs.
Who is Eligible to Participate in STEP?
Employees eligible for STEP (must meet all 4 criteria)
- UC Davis Health career staff employees only
- Completed probation
- Satisfactory or better rating on most recent employee performance appraisal
- No disciplinary action within the two years immediately preceding the application
Employees ineligible for STEP
- Employees in an academic title (e.g. fellows, residents, post doctorates)
- Contractor, casual, contract, or per diem appointments
- Appointment type and/or position changes to an ineligible classification (pending requests will be voided)
- Employee separates/terminates from UC Davis Health (pending requests will be voided)
What Type of Programs Qualify for STEP?
Both online and instructor-led courses in accredited programs qualify if they are one of the following:
- Prerequisite Courses (to qualify for reimbursement, proof of prerequisite requirement must be submitted)
- Specific Skilled Allied Health Vocational Certificate Programs
- Associate's Degree
- Bachelor's Degree
- Master's Degree
- Doctoral Degree
If you are unsure if a program qualifies, please contact your school of interest to check for accreditation and degree status.
Which Expenses Are Eligible for Reimbursement?
Qualifying expenses
- Tuition
- Books and Supplies
- Fees that are required for enrollment or attendance at an eligible education institution (excludes health fees)
Non-qualifying expenses
- Classes taken prior to successful completion of probationary period
- Expenses paid with gift cards, grants, scholarships
- Expenses paid by another person on your behalf
- Room and board, similar personal, living or family expenses
- Nursing uniforms
- Insurance and medical expenses (including student health fees)
- Transportation
- Sports, games, hobbies, or non-credit courses
- Technology equipment, computers, laptops, tablets, book bags, etc.
- Shipping and handling fees
- Miscellaneous educational institution fees (e.g. parking, health fees, graduation, test/exam fees)
- Student loan application fees
- Conference and seminar registration fees
- Certifications (e.g. PMP, CA HIMS, CBCS)
- Continuing Education Units (CEU)
- Membership, licensing and exam fees
- Travel, lodging, meals and parking expenses
For more information, please refer to the IRS guide to Qualified Education Expenses.
Payment and Tax Information
Forms of payment eligible for reimbursement
- Cash
- Check
- Credit Card
- Student Loan
Unacceptable proof of payment
- Receipts with a name other than the employee’s
- Credit card statements
- Bank account statements
- Copy or carbon of a personal check
- Screenshots
- Program Taxability Information
Reimbursements are subject to be taxed in accordance with IRS guidelines and/or UC policy. Approved non-taxable tuition reimbursement requests will be paid via check. Approved taxable tuition reimbursement requests will be manually added to employee's paycheck as imputed income.
- Education needed to maintain or improve skills in the current position is not taxable (IRC Sec 162, No Limit).
- Education that is part of a Graduate Program is not taxable up to $5,250 (IRC Sec 127).
- Education that is part of an Undergraduate Degree at UC or another educational institution is not taxable (IRC Sec 177, No Limit).
- All other types of education not addressed above is taxable.
How to Submit a Request
When should I submit my request for reimbursement?
You have 60 days after the completion of your coursework for that academic period (term, quarter, or semester) to submit your STEP request and expenses for reimbursement consideration. STEP requests received on day 61 or after will not be eligible for reimbursement.
Supporting documents include:
- An itemized tuition invoice, including the academic term and dates
- A paid tuition receipt indicating form of payment
- An itemized book/materials invoice
- A paid book/materials receipt or itemized invoice indicating form of payment (a course syllabus may be requested if necessary)
- Proof of successful course completion and a final grade of “C,” Credit*, or Pass* (*accepted only for courses that do not provide a letter grade)
These documents can typically be obtained by contacting your school's registrar, business office, or financial aid department. You may let them know that you are applying for an employer-funded tuition reimbursement program.
Important requirements
- Supporting documentation must include:
- Your name
- Name of educational institution (as appropriate)
- Date
- Screenshots are unacceptable
How to complete your request in the STEP program's application portal, Tuition.io
- Create an application in the Tuition.io portal. The application link and applicant guide are available at the bottom of the page.
- Enter the school or program information, including the term begin and end dates.
- Enter each course separately, along with the grade received for each course.
- Enter the tuition and book/materials fees for each course entry.
- Upload all required documents.
- Submit the application no later than 60 days after you've completed your term.
If you are unable to access the Tuition.io application portal, contact the Wellbeing team at [email protected] for assistance.
Please Note: If your term start and end dates fall in different calendar years, funding for your request will be applied to the year in which the term ends. Please ensure that your term dates are entered accurately, as they determine the funding year and may differ from your graduation date.
Submitting your application and what to expect
- Submit your application only after you have successfully completed the program or course within the 60-day timeframe.
- Monitor your application status for updates.
- Your request may need revision, additional information, or may be approved or rejected.
- Decisions and comments will be viewable in the comment section of your application.
How are Reimbursements Issued?
After your STEP reimbursement request has been approved, the request is routed to Accounts Payable or Payroll for them to complete their payment processing. Please allow up to 6 weeks for reimbursement to be issued.
You will receive your reimbursement one of two ways:
- Approved non-taxable tuition reimbursement requests will be paid via check
- Approved taxable tuition reimbursement requests will be manually added to employee’s paycheck as imputed income
If you have recently changed addresses after applying for a reimbursement, contact the Wellbeing team at [email protected] and let them know as soon as possible to ensure your paycheck is delivered to the correct address.
- Payments issued by check are mailed to the address provided on the reimbursement application, not to the address in UC Path.
- For taxable tuition reimbursement requests, it's important to update the payroll department regarding banking or credit union account changes to avoid direct deposit payments issues.
- If you change your name it's important to contact the Well Being team and the payroll department. If the name on your reimbursement payment does not match the name on the banking or credit union account, it may not be honored.