The CARES Act includes significant student loan relief for most, but not all, federal student loans. Here is the current announcement on studentaid.gov: Your payments will automatically stop from March 13, 2020, through Sept. 30, 2020. To provide relief to student loan borrowers during the ...
Under the CARES Act, an employer is allowed in 2020 to pay up to $5,250 of an employee’s student loan without the employee having to recognize income for the payment. Because current law allows an employer to pay up to $5,250 of an employee’s qualified educational expenses tax free ...
Student loan relief Under the CARES Act, employers can provide up to $5,250 annually toward employee student loan payments on a tax-free basis before January 1, 2021. The payment can be made to the employee or the lender. (The employee can’t take a student loan interest deduction for ...
provides an income exclusion for employer payment of student loan repayments during 2020 restricts compensation paid to highly compensated employees of entities that receive governmental aid under the Act More Attorney Advertising—Sidley Austin LLP is a global law firm. Our addresses and c...
Delay of Payment of Employer Payroll Taxes The CARES Act will allow for most employers to defer paying their share of applicable employment taxes from the time the CARES Act is signed into law through December 31, 2020. Half of this deferred amount would be due on December 31, 2021 and the...
The employer’s payment must be made after the CARES Act’s enactment, but before January 1, 2021. To the extent the employer pays a portion of the employee’s student loan under this new provision, the student will be denied a corresponding deduction (i.e., double benefit) under ...
The act provides funding for grants of up to $10,000 to provide immediate relief for small business operating costs. Payroll tax deferral This provision of the CARES Act allows employers to defer payments of the employer share of the Social Security Tax on behalf of their employees. Deferred ...
• The Act enables an employer to make payments on an employee's qualified education loan on a tax-free basis after the date of enactment and before January 1, 2021. The $5,250 cap on the educational assistance payment also applies to such student loan payments made by emplo...