Q. So, this is outdated guidance from my employer then?
A. Yes
Q. Will only be tax-free up to $5,250 because of changes in the rule that affected being able to deduct those amounts effective for filing year 2018?
A. Not exactly. Only $5250 will be tax free, but not because of the rule change. $5250 was the tax free limit before and after 2018. The two issues are not related.
Tuition remission/reduction for employees of a college are treated differently than a tuition reimbursement plan of a regular employer. The $5250 limit does not apply. The rules are different for graduate and undergrad tuition. See chapter 1 of IRS Publication 970. But, the bottom line still is: if it's in box 1 of your W-2; it's taxable.
