Cares Act Student Loans Employer. Qualifying student loans are limited to higher education expenses. Under the cares act—the $2.2 trillion stimulus package that congress passed in march—there is a tax incentive for employers to help their employees with.
Finally, the cares act also includes a new twist on a popular employee fringe benefit. This is an opportunity for you to do your part and support your employees during a stressful time when they arguably need it the most. In addition to providing tuition assistance to eligible employees, between march 27 and december 31, 2020, employers may repay up to $5,250 of an employee’s student loan obligations.
The cares act’s expansion the cares act expands code section 127 “educational assistance” to cover certain preexisting student loan payments (principal and interest), whether paid directly to employees or to lenders, for the period of march 27, 2020 to december 31, 2020.
Exclusion for certain employer payments of student loans. It has been crucial as unemployment numbers have risen to. This new provision benefits both the employee and employer. The cares act and employer student loan contributions update 12/27: