@auspiciouschi wrote:
Hello,
I work in a Public Entity which is a Housing Authority in WA. Can my employer qualify to assist pay some of my students loan as part of benefits?
Thank you,
Cherie
That's a question for the business and their tax advisors. As mentioned, the business must have some kind of tuition benefit plan in place that meets all the normal IRS regulations.
The easiest way is if a business already has a tuition plan—such a plan can pay qualifying employees up to $5250 per year for tuition reimbursement and have it be tax free. If they already have such a plan, it's not too hard to extend it to include loan repayment, if they want to. But it must apply to all eligible employees, not just selected employees.
If no tuition plan is in place, they would have to set one up first.
The business can also give you money outside of a qualified plan to help you with expenses, but that has to be treated like any other taxable bonus, and be included with your wages for income and social security taxes.
