Bill > HR395

This bill, the Student Loan Employment Benefits Act of 2013, proposes to amend the Internal Revenue Code of 1986 to allow employers to provide student loan payment assistance to their employees, with these payments being excluded from the employee's gross income, meaning they won't be taxed. This assistance can cover the principal or interest on loans taken out solely for qualified higher education expenses, or for refinancing such loans, with a yearly limit of $5,000 per employee and not exceeding the employee's earned income for the year. To qualify, employers must establish a written plan for the exclusive benefit of their employees, which cannot discriminate in favor of highly compensated employees (defined as those in the top 20% of earners or who own a significant portion of the company), and must benefit a broad range of employees, with specific rules for excluding certain employees like those under 21, those with less than a year of service, or those covered by a collective bargaining agreement where student loan benefits were part of negotiations. The plan also requires reasonable notification to eligible employees and a yearly statement of the assistance provided, and while it doesn't need to be funded, it must meet certain benefit distribution requirements to avoid discrimination. This provision aims to provide a tax-advantaged way for employers to help their employees manage student loan debt.