Compliance April 25, 2005

House Bill Creates Employer Higher Education Tax Break

April 25, 2005 (PLANSPONSOR.com) - Three US House Republicans have joined forces to introduce a new bill that provides tax incentives for employers who help pick up the tab for the higher education of their workers' children.

Reported by

Fred Schneyer

>The Family Friendly Employer Act (HR 1518), grants tax deductions of up to $2,500 for employers who pay for their employees’ children’s education, according to a statement by sponsor Representative Ric Keller (R-Florida). Co-sponsors on the measure were Representatives Mark Foley (R-Florida), and Phil English (R-Pennsylvania).

>Under current law, employers already receive a tax benefit for helping to pay for employees’ education.

“Many students find themselves unable to fully fund their college education on Pell Grants and student loans alone,” Keller said in the statement. “When I found myself in a similar situation, I received help from my mother’s family-friendly employer. We should reward the family-friendly employers who provide this same opportunity to students today.”