Q&A of the Week September 15, 2021

Answer:

The employer student loan assistance program was extended through 2025 as part of the CARES Act. Employers can pay up to $5,250 per year for an employee's student loans. The employer will receive a payroll tax exclusion for the amount paid. The money is tax-free, so the employee doesn't have to pay income taxes for up to $5,250. Employers can pay the employee directly or they can pay the student loan servicer. To learn more about why employers may want to take advantage of this program: https://finance.yahoo.com/news/employer-pay-5-250-annually-153402898.html.