Smarter Benefits: How Educational Assistance Can Pay Off
In today’s competitive job market, benefits that go beyond the basics – like health insurance and paid time off – can be a major differentiator for employers. One benefit that’s gaining traction is educational assistance, a valuable tool for both recruiting and retaining top talent.
But what exactly are educational assistance benefits, and how do they work?
What Are Educational Assistance Benefits?
Education assistance benefits are programs offered by employers to help employees cover the cost of furthering their education. This can include tuition for college or graduate school, trade certifications, continuing education courses, and even student loan repayment programs.
The most common form is a tuition or reimbursement plan, where the employer pays for all or part of an employee’s tuition, often with conditions such as maintaining a certain grade or agreeing to remain with the company for a set period.
Tax Advantages for Employers and Employees
One of the best-kept secrets of educational assistance? Its tax efficiency.
Employers can provide up to $5,250 per employee per year in educational assistance without either party incurring tax liability. That means:
- Employees don’t pay federal income tax on benefit
- Employers avoid payroll tax on that amount
It’s a financial win-win – but only if your plan is structured properly. To qualify for these tax advantages, your benefit must:
- Be offered through a formal, written plan
- Not discriminate in favor of highly compensated employees
- Cover only qualifying expenses
Our team can help ensure your educational assistance program checks every regulatory box – protecting your tax savings while supporting your employees.
What Can Be Covered?
Educational assistance is more flexible than many realize. Depending on how your plan is designed, it can cover:
- Tuition and fees
- Books and supplies
- Online courses
- Continuing education units
- Professional development programs
- In some cases, student loan repayment (especially under expanded provisions in recent years)
As always, we recommend designing your benefit to match the needs of your business and workforce – and we can help tailor that design.
Why It Matters
Educational assistance isn’t just about employee perks – it’s about business sustainability and growth. When employers invest in their team’s development, they see returns in:
- Talent recruitment – High-performing professionals seek out employers who invest in their future.
- Employee retention – Reducing financial barriers to education fosters loyalty and long-term commitment.
- Upskilling the workforce – As technology and compliance evolve, investing in continuous learning keeps your team sharp and your business relevant.
For employees, it’s a chance to reduce financial barriers to education, advance their careers, and gain valuable credentials without incurring more debt.
The Bottom Line
Thinking of adding educational assistance to your benefits package? Or wondering whether your current program meets IRS guidelines? We can help. From tax strategy to program design, our team provides hands-on support so you can make informed, confident decisions.
Smart benefits build strong teams – and strong businesses. Whether you’re preparing for growth, enhancing retention, or just trying to do right by your people, educational assistance could be the strategic edge you’ve been looking for.
To learn more about educational assistance benefits, visit broussardpoche.com.
About Brossard Poche
Broussard Poché, LLP is a trusted certified public accounting firm serving Lafayette, New Iberia, and Crowley, Louisiana. With decades of experience, we provide individuals and businesses with expert services in tax, audit, financial planning, and business consulting. Known for our deep client relationships and proactive approach, we’re committed to guiding clients through life’s major financial decisions while fostering a culture of collaboration, career growth, and community trust.