Kathleen Hugo and Joseph Percopo presented 2020 Employer Opportunities: Give more while spending less as part of the Primerus Webinar Series.

2020 Employer Opportunities PDF

Summary: Due to the Covid-19 crisis, two opportunities are available for employers to consider before the end of 2020: (1) Employer Disaster Relief Programs and (2) Educational Assistance Payment Programs. The Employer Disaster Relief Program is permitted via an Internal Revenue Code section which allows employers to grant (gift) money to employees (and others) to assist during these trying times. The Educational Assistance Payment Programs have existed for some time but the CARES Act added a new provision that permits assistance with qualified student loan payments (not just tuition reimbursement) up to $5,250. The benefit both programs offer is that the grant or education payment is not included as income for the employer or employee, and the employer may still deduct the amount given to the employee. Such treatment means that no employer/employee employment taxes are applied to the payment and the employee does not have to include the money for purposes of calculating their income tax liability. These opportunities allow employers to give more to employees while spending less than what a traditional “bonus” would cost the employer who was looking to help employees during these tough times