Tuition Reimbursement Law for Employers

My job is willing to pay for my graduate degree in civil engineering but they need to know what kind of law there is for tuition reimbursement. Like how they can show that they helped me on their
taxes and then deduct it on their end.
I've been searching and all I found are tax laws for employees.
Anyone know how this works if you're a business owner?
Thanks.
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PrinceAli wrote:

The employer can set up an educational assistance program. It would allow the company to pay for up to $5250 of tuition, fees, books, equipment and supplies per year per employee. The company can deduct the cost and the employee does not have to declare the income. Any payment in excess of $5250 is treated as compensation and is taxable to the employee and deductible by the employer.
Here is some information on how a plan should work:
The employer must have a separate written plan; The plan must be for the exclusive benefit of employees; The plan must be for the purpose of providing employees with educational assistance; The plan must not discriminate in favor of highly compensated employees, or their dependents; No more than 5% of the amount paid or incurred by the employer for educational assistance during the year may be provided to a class of individuals who are shareholders or owners (or their spouses or dependents), each of whom (on any date of the year) owns more than 5% of the stock or of the capital or profit interest in the employer; There must be reasonable notification of the availability of the program provided eligible employees; and There must be satisfaction of certain reporting requirements; and Employees qualifying for exclusion of educational benefits from taxable income are prohibited from taking a deduction or credit for the amount of assistance received.
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Try publication 15B.
<Quote source="http://www.irs.gov/publications/p15b/ar02.html#d0e1101
Assistance over $5,250. If you do not have an educational assistance plan, or you provide an employee with assistance exceeding $5,250, you can exclude the value of these benefits from wages if they are working condition benefits. Property or a service provided is a working condition benefit to the extent that if the employee paid for it, the amount paid would have been deductible as a business or depreciation expense. See Working Condition Benefits, later.
</Quote>
If the assistance is a working related benefit, then it is not taxable to the employee even over $5,250 (this is the 2008 limit). But what is an example of a working related benefit, and what isn't. Later on they say: "Examples of working condition benefits include an employee's use of a company car for business and job-related education provided to an employee." So if the tuition is very closely related to the job, then maybe there is no limit. But where does the line get drawn?
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