You can exclude up to $5,250 of educational assistance benefits you received from your employer. To qualify for the exclusion, the benefits must be part of a written educational assistance program. Your employer can tell you whether your benefits are part of a qualified program.
Key legal considerations under Section 127 You can exclude up to $5,250 per year per employee from taxable income for educational assistance. Beyond this limit, the excess educational assistance becomes taxable and subject to income and payroll taxes.
Employee Assistance Programs (EAP), which are offered to all managers, employees, and their families, are designed to address individual, team, and organizational problems. Services include counseling and support services for: Stress management. Work-related issues.
Similar to EAPs, a resource provided to members giving them access to counseling and referral services to assist with problems they may be having which negatively impact job performance. The union or business pays for this service for its members.
In one study, over 70% of employees reported improved productivity after using the EAP! And 69% of employees with low or moderate productivity increased their productivity to higher levels after using the EAP.