Employer Paid Tax-Free Educational Assistance Now Includes Up to $5,250 in Student Loan Repayment
Under Section 2206 of the CARES Act enacted in March of 2020, tax-free educational assistance to employees now also includes loan payments made by employers to or on behalf of employees for their eligible student loan debt. The Consolidated Appropriations Act, 2021 (CAA), signed into law by President Donald Trump on Dec. 27, 2020, extends the favorable tax provision until 12/31/2025. Educational Assistance Program ("EAP") under Section 127 of the Internal Revenue Code has lo