Cares Act Student Loans Employer. Section 2206 of the cares act allows a portion of student loan payments to be excluded from income. Employers should be aware of the changing rules related to student loan garnishment
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. 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. Section 2206 of the cares act allows a portion of student loan payments to be excluded from income.
The provision in the coronavirus aid relief and economic security (cares) act allows an employer to contribute up to $5,250 annually toward an employee’s student loans, and the payments would be excluded from the employee’s income.
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. Employers should be aware of the changing rules related to student loan garnishment 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 and student loan repayment.