The most recent stimulus invoice handed into regulation consists of an extension on tax-free funds by employers to pay down worker scholar mortgage debt. This provision initially set by the CARES Act was as a result of expire on December 31, 2020, however final month’s passing of the Consolidated Appropriations Act, 2021 extends the profit till December 31, 2025.
Scholar Mortgage Funds Resume Subsequent Month
This act didn’t embody an extension on CARES Act’s scholar mortgage cost aid. This implies federal scholar mortgage debtors will resume cost starting February 1. This presents a chance for employers to assist their workforce scale back their scholar mortgage debt by providing tax-free contributions.
Employers Can Construct a Personalized Profit
This contribution profit permits employers to make tax-free funds as much as $5,250/worker annually. Workers can apply the contributions to the federal and personal loans of their selection. It additionally will end in workers to avoid wasting on their federal revenue taxes. Employers have flexibility in easy methods to implement this profit, together with providing mounted, matching, one-time, or recurring contributions.
Senator Mark Warner (D-VA), who launched the Employer Participation in Reimbursement Act in 2019, stated “It is a win for each graduates and employers. By extending this provision, employer can have the flexibility to proceed to recruit and retain a gifted workforce whereas additionally serving to working People handle their monetary future by means of and after COVID-19.”
Contact IonTuition at present in case your group is curious about offering scholar mortgage contributions.
