Employee Student Loan Forgiveness May Be Taxed as Income in Certain States

If you’ve been following the news lately, you likely heard about the promise of $10,000 to $20,000 of your employees’ student debt being forgiven.

Yet, many are unaware that though the student loan forgiveness won’t be taxed as income on the federal level, it may be taxed at the state level in certain states.

To date, Indiana, Mississippi, and North Carolina have all announced they will tax the loan forgiveness. Other states that may follow suit include Arkansas, California, Minnesota, and Wisconsin. As many as 13 states may tax student loan forgiveness.

How To Navigate Open Enrollment Benefit Choices

Employers cringe this time of year because it can be confusing comprehending the unfamiliar concepts of benefit offerings and then identifying which benefits are a right match for their employees.

Open enrollment is an opportunity for employers to adjust the benefit options they previously offered their employees or elect new plans. This period of time for most companies falls in November, to which all forms must be returned and processed in order for the new benefit plans to take over on January 1 of the new year.