Educational Assistance Programs for Employees

Businesses can reimburse employees up to $5,250 each year for educational courses and, through 2025, student loan repayment (principal and interest). The IRS posted a Sample Educational Assistance Program that can be used to satisfy law requirements. You can tailor the plan for your business. Very small businesses usually don’t use these plans because it can be difficult for them to meet nondiscrimination requirements. IRS FAQs clarify some important points, such as the rule that the plan can’t cover employees’ spouses and dependents. #IdeaoftheDay