Imagine a world in which the standard benefit package at work includes health insurance, 401(k) contributions, and a few thousand dollars to pay off your student debt.
More companies than ever are offering that last perk, but it’s still a fringe benefit. Congress has even considered giving companies a tax incentive to do just that.
At the moment, when employees get money to pay off their student debt, it counts as taxable income, like a salary bump, just for debt payments. Unlike money that goes toward a 401(k), employees and employers have to pay taxes on the benefit.
For many businesses, it costs more than it’s worth. “I think the tax treatment now is a detriment to more companies adopting this,…
Read the full article at: http://www.courant.com/hartford-magazine/education/hc-hm-nh-education-employers-pay-debt-20160804-story.html