PE Exam Prep

[TheMoonlitKnight]

I was about to start prepping for the PE exam in the spring. I asked my company if they would pay/reimburse for study material and/or the exam itself - they said no to it all.

Is this common?

During proposal time, our structures division is always trying to get as many PE's on the projects as possible, and it is clear that if there were no PE's at a structural firm, it would be useless. To me, that indicates great value to the business. Is it too much for me to expect monetary investment in my efforts, seeing is they will be gaining a great benefit?

 

[fegenbush]

If they will not reimburse, treat it as a deduction on your income tax return. "Unreimbursed Work Expense" is a good catch-all for similar items. Of course, discussion with your tax professional is advised, but keep receipts and you will be in a favorable position should you ever be audited.

 

[JedClampett]

When I got my SE, I wasn't reimbursed for expenses directly. They paid me for the day and a half taking the test, but the books and other expenses were on me. But I was given a $1500 bonus for passing the test. This more than made up for any expenses.
It suprises me that they wouldn't reimburse you in some way, like a raise or bonus upon passing. Some companies base their rates on whether their employees are licensed, so it seems unfair not to share a little of that with the person who's effort has been made. Are you sure that they don't reimburse the test materials, but give you something upon passing?

 

[zdas04]

In your case, I'd pay it (and try to deduct the costs, but I think that deduction is subject to a 3% gate so it is unlikely that you'll spend enough to make the deduction) and not mention it again at work. Take the test on vacation days and pass it. The day you get your notice update your CV and either renegotiate your salary or negotiate a new salary elsewhere. In your field a P.E. is WAY more valuable to an Engineering firm than an EIT. Your company might deserve some credit if they did anything to facilitate the work you are going to have to do to get there, if they won't then you shouldn't ever stamp anything for them.

David Simpson, PE
MuleShoe Engineering

Law is the common force organized to act as an obstacle of injustice Frédéric Bastiat

 

[TheMoonlitKnight]

fegenbush: Don't you have to be be deducting more than your standardized deduction for that to count? I don't pay a mortgage or have any large deduction.

Jed: I could ask what I could expect for a bonus. The "reimbursement" could be a matter of semantics...

zdas: I think you are referring to what I was thinking about the taxes as well. I had thought about not taking it in the spring and just wait until they start asking when I am going to take it. Maybe if they start getting antsy about me getting the PE, it will encourage another discussion or negotiation. It could be possible seeing as they praise my work and have nominated me for a company award this year.

Thanks, guys!

 

[fegenbush]

MoonlitKnight,

Yes, you would need the total of your itemized deductions to be more than the standard deduction in order for this to be an effective strategy. Ref:

http://tinylink.in/79Y7

That is why I recommended consulting with a tax professional.

 

[AELLC]

In the grand scheme of things, I wouldn't harbor any animosity towards your employer for not reimbursing you. I doubt you will be forever in the employ of that company, and if you find yourself without a job, that PE will enable you to freelance. If you reach mandatory retirement age and still wish to work, out of economic necessity or not, that PE will enable you to freelance, be it as a part-time consultant to firms, or provide engineering for custom homes, etc.

The good thing about our profession is that we can find work that requires a PE to perform, and we can do it out of our homes with minimal overhead, with only a computer and printer.

 

[SLTA]

No one I've worked with has gotten a bonus, raise, or reimbursement for passing the PE, nor did I. It was just expected to be part of your job as an engineer. Good luck!

 

[TheMoonlitKnight]

What about this... When I pass my PE the company will surely increase my billable rate, thus giving the company a raise. Why shouldn't I see something in that overall rate increase? How much additional overhead is really generated just by having someone who is licensed - there is no way that that rate increase is all or mostly overhead expenditures.

 

[SLTA]

If they'll be paying your insurance, that's a pretty good chunk.

 

[Ron]

MoonlitKnight....to not support your diligence and willingness to take the PE exam is shortsighted of your employer. Prepare for it, take it and then do as zdas04 suggests.

slta....while I agree with your intent, and would do the same myself, I think an employer should support licensing and show it by reimbursement of costs if they can afford to do so. If they cannot, they owe a discussion with the potential new PE and support of a salary increase if they justify a rate increase of that person to their clients.

 

[SLTA]

Ron, I totally agree. I was just speaking from my experience. I sure do wish I had the experience the OP hopes for!

 

[kylesito]

Many companies reimburse you for "passing" the exam...not taking it. So, if you take it a dozen times, you pay for the first 11 and they pay for the one you pass. I guess the reasoning is to make sure you take it seriously.

The exception for this was when I took the SE. My company viewed it as unnecessary and I got a paid day off and a congratulations when I passed...that's it.

Having said that, studying for and taking the exams has been one of the best investments in myself I have made in my career so far. Don't sweat the money. The return on your investment will far exceed what you spend monetarily on these tests.

PE, SE
Eastern United States

"If a builder builds a house for someone, and does not construct it properly, and the house which he built falls in and kills its owner, then that builder shall be put to death!"
~Code of Hammurabi

 

[TomDOT]

Don't put off taking (and passing) your PE, unless you just cannot come up with the cash.

Even if your current employer doesn't give you a raise/bonus for becoming a PE, you instantly become more valuable as an engineer. Someone will be willing to pay more for your services.

My employer offers significant paid time to spend taking a PE prep course, pays for the course itself, plus the exam itself and typically gives a title change/pay raise upon passing the PE - but if you take the goodies (time off, prep class), you have to agree to stay onboard for a few years.

 

[TheMoonlitKnight]

Thanks for the feedback. Tom: I would be happy to sign a contract to ensure their investment - it is actually about not having the ability to pay it due to an expensive chronic illness.

It just seems odd to me that they will send me to a seminar (2-week NBIS), which I know is expensive, but not contribute to the PE exam.

I will probably just start a PE exam savings account and take care of it when that goal is reached. That is a reasonable goal, and if they start bugging me about taking it, I have a good explanation for what I am working with.

 

[steellion]

I spent maybe $500 on P.E. study materials and reference books (you need to have the correct version of all of the relevant code books with you for the test). The firm did not reimburse me for study materials, but did pay me for the day I was taking the test and reimbursed the test cost when I passed. No raise or bonus after passing the P.E.

At most companies, you have to leave for another job in order to get fair market value for the value of your P.E. This never made sense to me... companies will shell out market value to hire a new P.E. but won't give a raise to someone already already in their employ that does good work, but that seems to be generally the way it works. If you can't afford the cost of study materials and reference guides, I'm sure you can borrow these materials from someone.

 

[MrHershey]

Not unusual for study materials to not be covered. Most firms seem to reimburse for a passed test, but not for fails.