Should my program have a benefits holding period, or be available to employees from the day they start?

Jun 5, 2017 9:16:07 PM / by Brian Cuttica posted in Insights

For most employers there is no need to implement a holding period. Student Loan Assistance is a strong recruiting tool, and the impact is maximized if newly hired employees start receiving employer contributions from day 1.

There are of course exceptions to the rule...

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Why I joined the Peanut Butter team

May 25, 2017 10:16:10 AM / by Marci McCalmon posted in Press Room

Earlier this year I was on the phone with a former colleague at ProService Hawaii, when he said, “Marci, Peanut Butter’s solution is so great, our employees are so happy, and they are solving a real need for us.”

It was at that moment that I knew I had to join this team.

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How exactly are taxes treated for student loan repayment?

May 17, 2017 6:29:12 AM / by Brian Cuttica posted in Insights

Today, employer sponsored student loan repayment is a taxable benefit. Employers can deduct their contributions like any other business expense, but will be responsible for payroll taxes. Similarly, employees will be responsible for taxes in the same way they are taxed on other income.

In the following examples we provide a before and after picture to fully illustrate the tax implications.

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Should we process employee payments via payroll?

May 9, 2017 12:14:55 PM / by Brian Cuttica posted in Insights

While this may seem like a value-add service to some, the reality is that your employees don't need this, it creates unnecessary complexity for your program, and in some cases may introduce financial liability. Though technicially possible, we advise employers do not process employee payments via payroll deduction.

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Should my student loan assistance program have a clawback provision?

May 4, 2017 10:54:46 AM / by Brian Cuttica posted in Insights

Clawback provisions are common with tuition reimbursement so this question comes up a lot. Because of some key differences in how we administer student loan repayment, there is no need to have this type of provision attached to your program.

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Congress Can Help Bring Student Debt Assistance to Small Business Employees & Lower Income Workers

Apr 27, 2017 8:26:26 AM / by Philippe Melin posted in Government Relations

National student Loan debt is $1.4 trillion with an 11.2% delinquency rate.  Studies show that the American dream is delayed for many young workers relative to previous generations because of student debt – home purchasing is delayed; retirement savings is delayed; and quality of life is impacted.

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Will employees that don't have student loans be angry if we offer student loan assistance?

Apr 25, 2017 12:07:05 PM / by Brian Cuttica posted in Insights

This is a common question. The short answer - No. Here's what we have learned after working with hundreds of employers.
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Leading States Are Considering Tax Benefits for Employers Who Participate in Student Debt Assistance

Apr 11, 2017 2:44:52 PM / by Philippe Melin posted in Government Relations

Midwest states Illinois, Wisconsin, South Dakota, Iowa, Michigan & Minnesota are all among the top half of states in the country with high student-loan indebtedness according to a study published in 2016 by WalletHub.   One Minnesota State Senator Jeffrey Miller recognized how much recent college grads are struggling, noting: “[Policy leaders are] always looking for ways to make higher education more affordable, but we should also work to help the folks who have already been through college and are struggling to pay back their student loans.”

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Developments in Peanut Butter’s Efforts for Federal Legislation to Make Employer Contributions to Student Loans Tax Advantaged

Apr 7, 2017 2:07:37 PM / by Philippe Melin posted in Government Relations

Federal legislators are working with Peanut Butter to develop and advance legislation that provide incentives to employers that assist workers with student debt.

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Congress Should Make Employer Contributions to Student Loans Tax Advantaged

Apr 3, 2017 8:23:55 AM / by Philippe Melin posted in Government Relations

There are few things on which the political parties agree these days, which leaves struggling the 44 million americans holding $1.4 Trillion in student loan debt.  It was therefore a rare moment of bipartisanship last month when Republican Rodney Davis of Illinois and Democrat Scott Peters of California joined together in the U.S. Capitol to introduce the Employer Participation in Student Loan Assistance Act, which creates tax advantages for employer participation in student debt assistance.  

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