Affinity HR Group Q&A
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Q: I have heard you speak about offering Student Loan Repayment as a benefit. How would this work? Is there any tax favorability to it?
A: In a tight labor market and with a large percentage of new hires carrying student loan debt, this is a great benefit to recruit new hires. Whether it’s paying a portion of the debt every month or paying off chunks of debt at a time, it helps employees alleviate the burden of debt. The benefits are fully taxable to the employee and to you, so there’s no tax advantage. But unlike salary, you will not be paying FICA or other employment taxes on the amount. There are a few companies out there to help with setting up a program like this such as Tuition.io, Futurefuel.io, and Vault. Check them out!
