tuition reimbursement & taxes

From: SMabel555@aol.com
Subject: tuition reimbursement & taxes
Date: Fri, 30 Jul 1999 16:10:12 EDT

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Hi.  If an employer offers tuition reimbursement, should they, or are they 
required to, take taxes out?

A friend's employer did this, claiming it is a federal requirement.  Logic 
says, however, that a 'reimbursement' is not pay, and shouldn't be taxed.

Anyone know the right answer??

Thanks,
Scott M.

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