Employers can set up an educational assistance plan to provide tax-free assistance to employees for tuition or student loan repayment up to $5,250 in 2026. The excluded amount is not subject to employment taxes. The IRS released a Fact Sheet detailing the rules for these plans. The plan can be used for owner-employees as long as the plan is not discriminatory (i.e., no more than 5% of plan benefits go to employees who are shareholders or their spouses or dependents). The IRS has a sample plan; just fill in the blanks. #IdeaoftheDay
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