Tax-Free Employee Benefit: IRS Reminds Employers of Student Loan Assistance Option
The IRS has issued a reminder about educational assistance programs, a little-known employee benefit plan that can help employees pay off student loans tax-free. These programs, created by Congress in 1978 and made permanent in 2012, can be used to pay for books, equipment, tuition, and now, principal and interest on qualified education loans. The plan allows for payments of up to $5,250 per employee per year and has already been widely adopted by larger companies. The IRS is hosting a webinar to provide more information on the program and encourage employers to take advantage of this benefit to attract and retain workers.