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Individuals and small business have both been shafted. There's a provision in the CARES Act which allows employers of any size to give a one time donation to e
by xyst 7y ago
Individuals and small business have both been shafted.
There's a provision in the CARES Act which allows employers of any size to give a one time donation to employees towards their student loans in exchange for decreased tax liability. I am currently talking with my employer, but thus far they do not want to participate in this program.
They initially cited the company does not apply for the program due to their company size, but I literally handed them the sections of the bill and it's eligibility criteria which states otherwise. Haven't received a response since last week, but I suspect it's going to fall to deaf ears.
- icelancer 7y agoCan you upload / send me those pages and any research you did on it? I'd like to see if I can offer it to my employees. I've never heard of giving money to employees for student loans that also reduces the employer's tax burden. EDIT: Everything I can find just says the student loan payments from employers are now tax-free for the employee. I would love to know if there are other areas of the bill that give the business tax deductions / tax credits for paying employees' student loans down, because I'll do that in a heartbeat. Example: https://www.benefitnews.com/news/what-the-cares-act-means-for-student-loan-benefits https://www.benefitnews.com/news/what-the-cares-act-means-fo...
- xyst 7y agoSEC. 2301. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS SUBJECT TO CLOSURE DUE TO COVID–19. see "(2) eligible employers" section" https://www.congress.gov/bill/116th-congress/house-bill/748/text#H6EC2102D2A4E4392B16B6F05A7D9B433 https://www.congress.gov/bill/116th-congress/house-bill/748/... good luck
- icelancer 7y agoI see nothing here that talks about employer tax benefits for paying for employee student loans - just a discussion of payroll tax credits and some stuff about healthcare benefits. Do you have any layperson articles or guidelines from a company like Gusto or other HR companies that give guidance on how to pay employees' student loans down and get tax deductions/credits?
- deleted 7y ago[deleted]
- gamblor956 7y agoSection 2301 is unrelated to section 2106, which provides the employer paid tuition benefit.
- gamblor956 7y agoYou're mixing up different provisions of the CARES Act, so it's not a surprise your employer didn't do anything. Section 2206 simply extends an existing tax benefit related to tuition payments made by the employer. The benefit is to the employee not the company. Section 2301 reduces payroll taxes by up to 50% for businesses that needed to shut down or reduce activities as a result of COVID19