{"id":16106,"date":"2024-10-21T12:05:51","date_gmt":"2024-10-21T16:05:51","guid":{"rendered":"https:\/\/gtm.com\/business\/?p=16106"},"modified":"2024-10-24T15:38:39","modified_gmt":"2024-10-24T19:38:39","slug":"retain-employees-student-loans","status":"publish","type":"post","link":"https:\/\/gtm.com\/business\/retain-employees-student-loans\/","title":{"rendered":"Retain Your Employees By Helping with Their Student Loan Payments"},"content":{"rendered":"

\"retain<\/p>\n

The IRS is reminding employers who offer educational assistance programs<\/a> that they can also use them to help pay for their employees\u2019 student loans. Though educational assistance programs have been available for many years, the option to use them to pay for student loans has only been available for payments made after March 27, 2020. Under current law, this student loan provision expires Dec. 31, 2025<\/strong>.<\/p>\n

Traditionally, educational assistance programs have been used to pay for employees\u2019 books, equipment, supplies, fees, tuition, and other education expenses. These programs can now also pay principal and interest on an employee\u2019s qualified education loans. Payments made directly to the lender, as well as those made to the employee, may qualify.<\/p>\n

In most cases, educational benefits are excluded from federal income tax withholding, Social Security tax, Medicare tax, and federal employment (or FUTA) tax. By law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year<\/strong>, and assistance provided above this level is typically taxable as wages.<\/p>\n

Program Requirements<\/h2>\n

An educational assistance program is a separate written plan that provides educational assistance to employees. Two key requirements are that these programs must:<\/p>\n