12 minute read
Student Loan Repayment as an Employee Benefit
EXPERT ADVICE STUDENT LOAN REPAYMENT FOR EMPLOYEES
BY GLYNIS ROBERTS
Increasingly, individuals comprising today’s workforce are straddled with significant levels of student loan debt. At the same time, these workers are often conflicted as to whether they should focus on paying off their debt or set aside funds to pay for retirement.
As an employer, adding a student loan repayment program to your employee benefit portfolio not only helps them address this dilemma, but also represents a tremendous opportunity to help attract and retain key talent.
In today’s competitive job market, it’s not enough to simply offer the traditional benefit portfolios of the past. Showing prospective talent and valued current employees that you care about their financial future by providing student loan repayment assistance goes a long way to help you stand out among your industry peers.
And by structuring the program as a part of your voluntary benefits package, you have the ability to customize the program according to your workplace demographics and budgetary capabilities. To further benefit employers, the coronavirus Aid, Relief and Economic Security (CARES) Act passed in March of 2020 added a little-known provision regarding student loans. The provision allows an employer to make up to $5,250 in student loan payments for an employee within a year.
Regardless of whether the payments go directly to the employee or to the student loan servicing entity, the money is considered tax-free to the employee and the employer is excluded from paying payroll taxes on the funds.
As of this writing the provision, originally set to expire at the end of 2020, has been extended through December 2025.
Employers who assist employees with student loan repayment can utilize a variety of methods, including fixed contributions, matching contributions, consolidating loans or refinancing.
With these programs, the employer first decides how much, if any, they are willing to contribute into the program. Then, based on the vendor chosen, the program options include models focusing on refinancing, consolidation or payroll deductions.
The employer can set a specific amount they agree to pay toward the student’s debt over the course of a year. This is an arbitrary amount set by each employer, typically, $1,000 to $2,000 per year, although larger companies sometimes offer amounts as high as $10,000.
An employer can also set certain eligibility criteria, such as being actively at work for the firm for a required minimum time period or having graduated within a certain number of years.
The employer can choose to match the student loan payment amount by contributing funds into a 401(k) on behalf of the employee. This relieves the employee of the burden of making the choice to either repay student loan debt or save for retirement.
Refinancing the debt can lower the interest rate and corresponding monthly payments, converting it from a federal loan to a private one.
Consolidating loans combines multiple loans into one with a recalculated interest rate and monthly payment.
By creating a differentiated, unique benefit package that addresses a specific employee need, employers benefit by boosting employee engagement, increasing productivity levels, and improving employee retention rates.
Glynis Roberts is senior vice president of My Benefits Advisor. Reach her at (212) 706-9451.
The Queens Chamber of Commerce offers its members access to My Benefit Advisor as a solution for employee benefits, including voluntary offerings. For more information about My Benefit Advisor, visit our website at qcc.mybenefitadvisor.com.
MEDICAID
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ishing $156,444 per year!
In the event only one spouse is seeking Medicaid assistance, then the other “Community Spouse” may have assets between $74,820 to $130,380, and is permitted to keep monthly income of $3,259.50. If the Community Spouse’s monthly income is less than this amount, they may keep some or all the income of the spouse seeking Medicaid.
With proper Medicaid planning, it is possible to lower your available resources below the limit while also achieving your estate planning goals.
This has merely been a primer on Medicaid. The laws surrounding Medicaid are nuanced and extensive. There is no one plan that will fit everyone’s needs, which is why it is important to speak with an elder law attorney to create a plan that is specifically tailored to your needs.
EXPERT ADVICE DON’T GIVE IT ALL UP TO GET MEDICAID
BY DONNA FUREY, ESQ. & JOHN SAMARAS, ESQ.
A common misconception exists that an elderly person must “give up everything” to qualify for Medicaid benefits. This is not the case. An individual may be able to receive Medicaid assistance with proper planning.
There are two main types of Medicaid for the elderly: Community Medicaid and Institutional Medicaid.
Community Medicaid is when an individual wants to remain at home while receiving medical assistance in the form of health care aides. Institutional Medicaid is when an individual cannot stay home and needs to reside in a nursing home.
Effective October 1, 2020, a 30-month “look back” penalty period will become effective for people applying for Community Medicaid. That means that Medicaid will “look back” at financial transactions made during the 30-month period before the date of application and impose a penalty for any gifts and similar transfers made during that period.
Due to the pandemic, the enforcement date for this new law has been delayed until January 1, 2022. Therefore, the old rules still apply. Under the old rules, an individual could transfer assets this month to qualify for Medicaid and would be eligible for Medicaid the next month.
To take advantage of the delayed implementation of the 30-month look back penalty period, an individual would have to transfer assets to the proper limits and apply for Community Medicaid before January 1, 2022.
To qualify for Community Medicaid in 2021, an individual may only have $15,900 in total assets and income up to $884 per month. In addition, the individual will also be entitled to a $20 monthly personal needs allowance for a total of $904. The home equity limit is $906,000.
The asset limit does not include personal property such as furniture, jewelry or vehicles. When calculating your resources, Medicaid does not include the value of your IRAs and 401Ks.
However, Medicaid will be entitled to the Required Minimum Distribution, which will count towards your income. If the person’s income is above the Medicaid limit, they may still be able to qualify for Medicaid with proper planning.
Under the changes, a Medicaid applicant must need limited assistance with physical maneuvering of three or more activities of daily living (ADLs). ADLs include bathing, personal hygiene, dressing, walking, transferring to the toilet, incontinence, and eating.
However, individuals with a diagnosis of dementia or Alzheimer’s must need at least supervision with two or more ADLs.
Nursing home Medicaid is for individuals who have extensive long-term medical needs. For this type of Medicaid, Medicaid looks back five years to see if any gifts have been made.
To qualify for nursing home Medicaid in 2021, an individual may only have $15,900 in total assets and may only keep $50 of their monthly income. If gifts have been made, the gift causes a penalty for Medicaid purposes during which the individual must privately pay the nursing home.
On average, a nursing home in the five boroughs of New York costs approximately $13,037 per month, which adds up to an aston-
Donna Furey, Esq. John Samaras, Esq. Associate
LAW OFFICES OF DONNA FUREY
ELDER LAW WILLS and TRUSTS ESTATE PLANNING MEDICAID PLANNING PROBATE ADMINISTRATION OF ESTATES SPECIAL NEEDS REAL ESTATE
Donna and John received their law degrees from St. John’s University School of Law. John is fluent in Greek. Donna is currently the Chairperson of the Board of Directors of the Catholic Lawyers Guild of Queens and was past President of the Queens County Women’s Bar Association, past President of the Astoria Kiwanis Club, past President of the East River Kiwanis Club, and past President of the Catholic Lawyers Guild of Queens. Co-Chair of the Elder Law Section of the Queens County Bar Assn. 2012-2019
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QUEENS CHAMBER MEMBER NEWS GUEST ROOMS JOIN GAMING ROOMS AT RWNYC
BY NICHOLAS LOUD
Resorts World New York City (RWNYC) has officially opened the Hyatt Regency JFK, a new 400-room hotel located next to the casino.
The eight-story hotel features restaurants, fitness center, and conference space next to Aqueduct Racetrack.
Dave Fuego, a spokesperson from Resorts World and the emcee of a ribbon-cutting ceremony last month, spoke about the casino’s long road to opening during the pandemic.
“In just over a year, we were able to transform this lot into what you see before you today,” said Dave Fuego of RWNYC at a ribboncutting ceremony last Friday. “New York is not coming back, New York is back.”
Genting American East president Bob DeSalvio, who oversees operation in Queens and as well as a casino in the Catskills, highlighted the 10th anniversary of RWNYC and the recent opening of a new casino in Las Vegas earlier this summer.
“There is no better way to celebrate Resorts World’s 10th anniversary than with the opening of this world-class hotel,” he said. “While the hotel has always been part of our vision, today’s ribbon cutting takes on additional significance as we celebrate the Queens community and do our part to move New York forward.”
Borough President Donovan Richards said the new jobs – the hotel is expected to create over 1,000 of them - and other opportunities will help the Queens economy recover from the pandemic.
“Queens is back in business,” Richards said, “and what better way to bounce back from the pandemic than bringing new jobs. We are not just looking to get back to normal, but to something better than normal.
“We are not just talking about jobs, we are talking about good jobs that offer people upwards mobility,” he added. “Manhattan is a thing of the past, come spend your money in Queens.”
State Senator Joseph Addabbo, who chairs the Senate Committee on Racing, Gaming, and Wagering, guaranteed that Resorts World will get a full gaming license from the state to loud applause.
“Resorts World is not just a symbol, they are in the weeds of the community,” Addabbo said. “They are at the street festivals and all the local parades.”
The Hyatt Regency JFK has 400 rooms.
EMU Health now offering a variety of Genetic Screenings for Cancer
Emu Health’s multispecialty center in Glendale, Queens provides a wide range of primary and special care services to its patients.
From primary care to gynecology to cardiology, orthopedics, and now multiple screening tests for markers of cancer mutations.
Genetic screening is a complex process where a person’s DNA is analyzed for mutations that occur as the body grows and repairs itself. Dr. Darren Sachs, is the Director of Breast Surgery at EMU Health, a board-certified general surgeon, and an expert on the nuances of genetic screening.
Testing can be done on samples of blood, saliva or from a swab of the inside of a cheek. It is a similar collection method compared to those used for genealogy services like 23andMe and other ancestry websites.
One of the first things that’s done at EMU Health when a patient comes in thinking they might have cancer is the intake of patient family history as well as past medical history to identify possible cancer risk. Dr. Sachs said, “if you were really young, and you have very aggressive breast cancer, we’d be afraid that you had a genetic mutation that caused you to have this breast cancer at an early age.”
Genetic testing looks for specific mutation markers, one such example is for a patient with a family history with breast cancer. For example, if someone is being tested because they have a family member with a known BRCA mutation, testing might focus only on looking for that specific mutation. In people of Ashkenazi Jewish descent, testing might focus on the specific BRCA mutations that are most common in this group of people
One of the unique aspects of Emu Health’s genetic screening services is that their tests can look for a multitude of mutations at an exam should there be a need, not just one focus such as, ones associated with breast cancer.
There’s multiple different types of genetic testing, you either can have the simplest form for just breast, which is BRCA,” Dr. Sachs said. “But we can test all the way up to 80 plus genes, including pancreatic colon.”
Testing does not always give you clear answers, but genetic counselors are trained to interpret and explain the test results and what they might mean to you and your family. But it’s important to understand that genetic test results can’t always guarantee you’re not at increased risk.
“I explain genetic testing like a crystal ball,” said Dr. Sachs, referencing some people’s apprehension towards genetic testing because of what it can potentially uncover. “It can open your eyes to something that could happen to in the future, which can be intimidating, yet is information that is priceless.”
To find out more information about Genetic Cancer Testing, you can contact EMU Health, located at 83-40 Woodhaven Blvd. by calling 718.850.4368.
