• Accountable Plans
  • Educational Assistance Program
  • Save Money
  • Save Taxes
  • Save Time
  • Student Loans
  • Tax Planning

Key Takeaways

  • Employees can receive up to $5,250 in tax-free reimbursements per year for qualifying educational expenses, such as student loan and tuition payments. 
  • Employers providing the educational assistance program to their employees can also benefit from these tax savings.
  • Complete a brief survey today and MainStreet will help you find ways to save money!

Did you know you can have tax-free education each year?

Do you want to boost your employees’ skills while saving on taxes? Employers should consider setting up an Educational Assistance Program for their employees to transform their educational expenses tax-free regardless of whether the educational expenses are job-related.

Educational Assistance Programs allow employers to provide employees with educational assistance of up to $5,250 annually, excluded from an employee’s income. Employers can also claim a business deduction for educational employee benefits paid and are not required to pay FICA or FUTA payroll taxes for benefits provided under the program.

Below are the criteria for educational expenses to qualify for an Educational Assistance Program: 

  1. Expenses must be incurred by an employee.
    If the employee’s parent or spouse took out a loan for the employee’s education, their payments on that loan would not qualify for this program.
  2. Expenses must be incurred for an employee’s own education. 
    If the employee pays for his or her child’s tuition or take out a loan for their education, the employee’s payments to their school or loan servicer would not qualify for this program.
  3. Expenses must be incurred for eligible purposes. 
    • Qualifying costs:
      • Tuition, books, school supplies, etc. 
      • Cost of academic courses, degree-seeking courses, and work-related courses.
      • Principal and/or interest payments on student loans.
    • Non-qualifying costs:
      • Laptops, tools, etc. 
      • Travel, food, and accommodation.
      • Cost of hobby/game courses, unless they are required as part of a degree program, or are related to the employee’s current job.

Who can enroll in the Educational Assistance Program?

This program is offered to all employees at the Company, regardless of compensation level. In some cases, individuals who own over 5% of a company may be ineligible to receive the full $5,250 per year.

Work with MainStreet

MainStreet’s AI agent will negotiate with you and your employees to set up, manage, and monitor educational assistance programs that work for everyone. Our educational assistance programs are always cost-neutral or better – you can offer this great employee benefit at no additional cost! 

When implementing an educational assistance program with MainStreet, you can count on:

  • It will be easy and hassle-free for everyone.
    As your employees’ needs evolve, let MainStreet handle any necessary changes to your savings programs. You’ll always have visibility, but won’t have to worry about managing your employees’ savings. 
  • You and your employees will receive the maximum possible benefits.
    MainStreet’s AI agent will ensure that the business and all its employees walk away with the most possible cash in your pockets. 
  • Your savings are IRS-approved.
    We work within various sections of the tax code to offer you the greatest tax savings available. We provide all necessary documentation and substantiation to protect you in the unlikely event of an IRS audit. 

You only ever pay when you save, so your cash flow will only improve while offering your employees these meaningful benefits.  To get started or learn more,  please fill out this brief survey.