Lesser-Known Tax Changes for Business and Individuals
BY DAVID GONZALEZ | DIRECTOR, ECONOMIC INITIATIVES
DID YOU KNOW? Employers can choose to make tax-exempt annual contributions of up to $5,250 per employee toward eligible education debt through Dec. 31, 2025.
The COVID-19 pandemic brought along significant funding programs to aid many small businesses as changes in their operations and consumer spending habits took center stage. Both small businesses and individuals stand to benefit from a few crucial programs installed to aid the economic rebound and stability of households. Below is a selection of a few lesserknown changes. Please note: business owners and individuals should consult their own tax professional for all tax decisions. The items listed below are strictly for informational purposes and are not tax recommendations, nor should they be used for the basis of any financial decision. Employer Student Loan Repayment Although most federal student loan borrowers are experiencing paused payments through September 30, 2021, there is an additional benefit from The Consolidated Appropriations Act of 2021 which allows employer-provided student loan repayment as a tax-free benefit to employees for five additional years. This extends CARES Act relief first made available in March 2020. This means that through Dec. 31, 2025, employers can choose to make tax-exempt annual contributions of up to $5,250 per employee toward eligible education debt. The funds allocated for this student loan assistance do not count toward an employee's gross taxable income and neither the company nor the employee will have tax liability for the money applied to student loan payments.
21 • YoCo CONNECT | FALL 2021 • Advocacy
