How to create a single Payroll Element to exempt up to IRS limit and tax remaining.

Summary:

Looking for assistance on how to create a single payroll element for Tuition reimbursement Educational Assistance (Non-Job Related) that exempts the first $5,250/current IRS limit per year and then taxes anything over that amount.

Content (please ensure you mask any confidential information):

Currently we use two elements – The first a primary classification of direct payment for the first $5,250 that requires manual tracking per calendar year. After the IRS max is met, any remaining is paid using a primary classification supplemental element to tax accordingly.

I didn't see a seeded secondary supplemental classification of Education Assistance Non-Job Related in Oracle. I know the secondary supplemental classification can be created and wage basis rules set up to tax FIT, SIT and FICA. Unsure thou how to add the annual calendar year tax exempt portion. Would that be through a fast formula, calculation component, input values, some other way or not possible?