Tuition reimbursement is a great complement to a student loan repayment benefit and vice versa.
Companies can offer tuition reimbursement and a student loan repayment as tax-free benefits as long as the total amount received by an employee, across all the benefits that qualify as “educational assistance,” does NOT exceed $5,250 per employee per year. If an employee receives more that $5,250 per year across both benefits, the excess benefit amount will be subject to income and payroll taxes.
Companies are increasingly offering student loan repayments along with tuition reimbursement as SLR tends to have a higher adoption rate than tuition reimbursement programs. Offering both together can have a higher impact on employees' financial wellness, attraction, and retention.
Highway makes it easy to track both benefits in our platform. Schedule a demo with our team to learn more.