Do you have an employee who you would like to see further their education? It may not be as tough as you think to help them meet that goal.
Employers may give up to $5,250 on a tax-free basis to an employee for educational assistance. This includes education assistance that is employer provided for graduate-level courses, like programs normally pursued by an individual seeking an education leading to a law, business, medical, or other advanced academic or professional degree.
A written plan must provide guidelines for the assistance, which must be publicized to all of your employees, and must meet a number of conditions. These include nondiscrimination requirements, meaning it cannot benefit highly compensated employees.
Any amount of the employee’s income used as education assistance may not be taken as a deduction or credit by the employee.
For more information, contact our office at 412-816-2228.