New Tool to Help Attract the Medical Workforce
April 8, 2022
Every little bit helps in the fight to attract and retain talent in the current climate. New federal legislation makes it more affordable for you to offer a new benefit to entice recruits.
Under the federal Employer Participation in Repayment Act, employers can now offer tax-free student loan repayment benefits to their employees of up to an annual maximum of $5,250 per year through 2025.
This benefit is tax deductible for employers and is excluded from taxable income for employees. Prior to this legislation, if an employer wanted to offer student loan assistance as a benefit, those payments would be included in an employee’s taxable income.
The maximum of $5,250 per year is identical to what is already permitted for tuition assistance benefits under the Internal Revenue Code.
The student loan being paid must be that of the employee, not of their child or spouse.
U.S. Representative Rodney Davis was a speaker at the recent ISMS Annual Meeting and focused his remarks on the Employer Participation in Repayment Act, which he sponsored.
To learn more, access the Employer's Tax Guide to Fringe Benefits, which offers guidance by the Internal Revenue Service (IRS) on how this tuition program can be implemented for 2022 (see Pages 10-11).