Student loan benefits are now tax-efficient

0

Employers Can Help Pay Off Employee Student Loan Debt as a Tax Deductible Business Expense

PHOENIX, January 13, 2021 / PRNewswire / – With the Consolidated Appropriations Act, 2021 enacted on December 27, a key benefit for employers and employees who pay off student debt through student loan repayment assistance programs has been extended.

Employers Can Help Pay Off Employee Student Loan Debt as a Tax Deductible Business Expense

The provision in the CARES Act that expanded Section 127 of the Internal Revenue Code to cover employer contributions to tax-free student loan repayments was scheduled to expire on January 1, 2021. However, the provision was extended for an additional five years, giving employers and employees tax benefits for student loan repayment assistance until January 1, 2026.

Specifically, the provision allows employers to contribute to the repayment of employee student loans without the employer’s contributions being taxed. Employers can contribute up to $ 5,250 as a tax-deductible business expense, and employer contributions are excluded from employee income tax.

To take advantage of this new tax benefit, employers can use a service like the Gift of College At-Work platform, which simplifies the process for employees to contribute to student loan accounts through payroll deductions and employers to match or contribute to these accounts as well. The platform also works for employee and employer contributions to 529 education savings accounts and ABLE. Adding these kinds of in-demand benefits can also make employers more attractive to high-caliber industry talent. exchange aid with their student loans.

“Employers can play a vital role in solving one of the most difficult economic crises of our time: student loan debt,” says Wayne weber, Founder and CEO of Gift of College. “Repayment assistance is a victory for the millions of Americans who have student loan debt and a victory for employers who can enjoy valuable tax benefits in the process.”

Learn more and get started today
Download more information to take advantage of the Gift of College At-Work payroll deductions and employer contributions platform here.

Learn more about Gift of College at http://www.giftofcollege.com. Follow Gift of College on Facebook, Instagram and LinkedIn.

CONTACT:
Marketing gift at work in college
877.244.6630
[email protected]

Cision

Cision

View original content to download multimedia: http://www.prnewswire.com/news-releases/student-loan-employee-benefits-are-now-tax-advantaged-301207662.html

SOURCE Donation from the College

Share.

Leave A Reply