Pay For Employees Education AND Reduce Tax Expenses

A new piece in Forbes outlines 3 different ways that smaller companies can potentially provide their employees funding to further their education while minimizing their tax obligations at the same time.

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The first option presented is by creating a scholarship, although there is typically minimal tax benefit and lots of red tape, so it is not an ideal fit for many businesses. Educational assistance programs are another potential option, and they are 100% tax deductible, but there is a limit on how much funding can be provided at a little over $5,000 per year, and there must be an extensive written plan for the program that includes all eligible employees. Working condition fringe benefits are the final option the piece presents which are also tax deductible but these arrangements can only be used to further employee’s skills in their current jobs and can’t be used to train for new skills, so most generalized education like undergraduate degrees are excluded.

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You can find that piece here.