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Employer CARES Act Education Assistance Programs

  • Saturday, February 18, 2023 2:03 PM
    Message # 13102946

    I've recently created an Education Assistance Program in our place of business consistent with he Coronavirus Aid Relief and Economic Security (CARES) Act provision for educational assistance. Under the Act, our employees are currently allowed to request that we/the employer pay up to $5,250 toward their student loan debt as a pre-tax deduction from their gross income. Program runs through 2025.

    I had an interesting question recently.  Upon the request of an employee (under our CARES Act education assistance program), can the employer convert a portion (up to $5,250) of the employee's unused and accrued Paid Time Off (PTO) to a pre-tax student loan debt payment versus the option above of taking it from their annual gross income. I have a few employees who haven't used a lot of PTO these past few years due to concerns around Coronavirus and travel.

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