Tuition Reimbursement - Employee Benefits

Hi Pablo, Thank you for your post. Employment Compensation should be a fully loaded payroll value. If the value you enter is not a full-loaded payroll value, you will be underestimating your impacts, because the software will remove payroll and income taxes and savings from the Employment Compensation value. However, tuition reimbursement is not a 'typical' benefit in that while it is offered to every employee of the company, in many companies a number of employees don't actually use this compensation. Thus, principally you can include tuition reimbursement in your analysis, but there are a couple of caveats to this. First as mentioned above, in order to model this you will need to know where that reimbursement is spent and ensure that it is at the university you are studying...that said, if university employees are getting that value through their university, that is likely the only place they can use those education tuition credits. Which presents two other potential concerns. Whenever considering college examples, there are often a lot of places where spending potentially "overlaps" and it can easily be double-counted. If you are modeling the impact of university operations, that operational impact already includes the tuition value that is paid by the employees. Thus modeling it again would be double-counting the expenditures to the university. In addition this is an imputed benefit of sorts in that in most circumstances the employee pays the tuition, thus decreasing their disposable income and then is reimbursed at something less than the value of the tuition payment by their employer thus netting out the actual income effect to the employee, the true benefit to employee is imputed in the sense that as a result of increased education they may qualify for new employment opportunities, thus while tuition reimbursement is a benefit it is an economic one that should be modeled as part of compensation.