One of Congress’s economic responses to the COVID-19 crisis is a temporary tax incentive for companies to help employees pay their student debt.
Until the end of 2020, employers can contribute up to $5,250 toward an employee’s student loan balance and the payment will be free from payroll and income tax under a provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136. A separate provision in the CARES Act temporarily pauses the monthly payments due on