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Starbucks Baristas: The daily grind

Full History - 2022 - 08 - 20 - ID#wtbspw
22
ASU tax took $1000 out of my paycheck (self.starbucksbaristas)
submitted by Wooden_Ad6793
After you receive more than $5250 in tuition coverage from Starbucks, they report the excess at taxable income on your paycheck. Not realizing I had gone over the threshold, I only got paid $153 for the last two weeks of work. And I’m an SSV that has been working overtime to pay for a move across the country next month. I realize I should’ve looked into this earlier but I had no idea it would come directly out of my paycheck and be so much. It was devastating honestly. This is a PSA to check your financials in MyASU because it could come out of your next paycheck :(
trentablondelatte 10 points 10m ago
this is the one thing i’m absolutely scared of:(
Poyal_Rines 5 points 10m ago
As a partner that's about to graduate, I've never had it happen to me. Only received refunds.
sheep_heavenly 8 points 10m ago
It's a recent change and only applies to any amount over $5250 for the year. So if you're going to school at a slower pace then you won't hit that cap and won't see the taxable income deducted from your paycheck.

I take 12 to 18 credits between both sessions each season and have had it happen a few times.
Poyal_Rines 2 points 10m ago
Ty for the information.
Ibebarrett 1 points 10m ago
Not a recent change, that’s an IRS requirement
sheep_heavenly 2 points 10m ago
It hasn't impacted me until recently despite me taking the same volume of classes. It's a bit rough to have to pay the ENTIRE tax burden in one paycheck as well.
Ibebarrett 1 points 10m ago
Yeah that part is weird, but I guess it’s better than finding out at the end of the year when you’re expecting a refund
heyitsmaria24 1 points 10m ago
When you say “between both sessions”, you mean 12-18 credits for 2 A and B fall/spring/summer sessions OR for the whole year? I’m currently trying to calculate what would be best for me. And this gives me a good idea 😅Also, if you don’t mind me asking, does financial aid outside of Starbucks help you? I only ask because I know fafsa wouldn’t give me anything
sheep_heavenly 1 points 10m ago
Ex Fall A ~9 credits (3 classes) and fall B ~9 credits (3 classes). Occasionally 4, because some classes have 1-2 credit companion classes. Those, at least in my major, tend to be actually the workload of another full class minimum.

I don't recommend it for what it's worth. I was mentally unwell after two years of it and took the summer off for safety, doing a single class now. And I swear every time it's midterms or finals, work schedules me 40 and calls me daily to cover.

Idk about financial aid, I just sign up for classes and it's all taken care of until my paycheck gets zapped later. I do take out some student loans to offset it, it can get direct deposited.
heyitsmaria24 1 points 10m ago
Thank you for that! I also get scheduled a lot during my shifts, so I don’t plan on going beyond 2 courses unless a few are 1 credit or something like that.
Apopheniacal 1 points 10m ago
Thank you so much for the detailed response!
heyitsmaria24 1 points 10m ago
If you have fafsa and receive really good grant money… they take that first. So it’s more likely you won’t go over. However, if you don’t, then it happens a lot more easily.
Apopheniacal 2 points 10m ago
How many classes were you taking?

On the My ASU finances page, is it your 'Starbucks Tuition Benefit' numbers that went over the 5,250?

It's kind of hard to find this information online, and this is very scary. Would appreciate all the information you can offer. I'm so sorry this happened to you!
spicychip16 1 points 10m ago
I always get $0 paychecks, you’d think I’d get one semester where it’s fine since I stay under $5250 and get taxed on the others but I have gotten 3 $0 paychecks this past year. Thank god I’m in my last semester:-)
elementaltruth 1 points 10m ago
welcome to starbucks version of “free college.” don’t forget about your books too…
Ibebarrett 1 points 10m ago
The college itself is free, blame the IRS for your tax bill
Melp87 1 points 10m ago
$1

Here’s a faq that should be helpful - Pg 6 outlines payment for taxes on tuition over the $5,250 threshold being withheld from paychecks at the end of each semester.

You can track how much of the benefit you’ve used on your paystub. You can also login to MyASU and check your finances tab-it’s only the Starbucks Tuition Benefit amount that counts, the College Achievement Plan Scholarship pant isn’t included in the taxable amount.

$1
To check paystubs from home:
Login and select the grey box to the left of the pay period that you want to see the details for (It doesn’t really look like a button) When you check your paystubs at home, you need to enable pop ups or else it won’t open.

Edit: I obsessively track this lol. I just reached the threshold, I took 13 credits in Spring and 13 in summer-(but it was the global education experience or whatever so there were additional fees and a higher tuition) so I know I’ll probably get a net zero check or 2 in December 😬 (fortunate to have a 2 income family)
Apopheniacal 1 points 10m ago
Hello! When you say track it on the paystub, I don't know what I'm looking for. I don't see anything that says college, SCAP, or tuition, etc.

Is there something I'm missing? Or are you only referring to what you see when it gets taken out of your check?
Melp87 1 points 10m ago
Under “earnings” there is the itemized list it starts with regular time, lines 4&5 on my paystub show SCAP Pre Tax and SCAP Post Tax. The pretax line shows how much of the benefit they have paid up to $5,250- anything over that will show up under post tax, this is the amount that you will have to pay taxes on. (I use 20% as a rough calculation in the quick and dirty math, meaning for every $1,000 they pay of tuition (over the tax free amount of $5,250), you can expect to pay roughly $200)
Does that make sense? Let me know if you have other questions.
It might not show up if you’re not enrolled or using the benefit? (My earlier paychecks don’t have this-I think because I want enrolled yet)
Edit: spelling
Apopheniacal 2 points 10m ago
AHHH. I had to go back to my 2021 checks to see it.

Basically it only pops up on your pay-stub if you've used the benefit. My guess is because the grants and whatever applied first, I haven't touched the tuition benefit \[yet\] this year, so I couldn't see it yet \[ie: it didn't show up until my December check last year\]. It'll probably be on my next check now that I'd been a full-time student all year.

Thank you so much for the information. It's really hard to find personal accounts & information on SCAP tax benefit stuff, and the PDF isn't as helpful as it could be when it comes to breaking this stuff down.

I appreciate your comments and detailed explanation!
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