The CARES Act allows employers, like agency owners, in 2020 only, so this is a special pandemic change to the IRS rules

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– Hey everybody! Drew McLellan here from Agency Management Institute. This week, coming to you again from Orlando, Florida, where I was teaching the Money Matters workshop. Before I talk to you about this week’s tip, I wanted to shout out and a quick thank you to Gail for sending me this Savannah Bananas Minor League Baseball Team T-shirt. So, Gail, thank you very much, and go Bananas! So what I want to talk to you about this week is the CARES Act. So this is a US-based tip this week. The CARES Act allows employers, like agency owners, in 2020 only, so this is a special pandemic change to the IRS rules. so this is a special pandemic change to the IRS rules. In this year alone, if you’re going to give your employees bonuses before the end of the year, you have the option to offer to them that you can pay up to $5,250 towards their student loans. that you can pay up to $5,250 towards their student loans. So, normally you would write them a check for $5,250 or $5,000 or whatever it is, you take their taxes out of it and they would have that money immediately. Or this year, what you can say to them is, if you have a student loan and you would rather have the money go towards your student loan, there is no tax taken out of it, so the whole $5,250 would go against their student loan. so the whole $5,250 would go against their student loan. I’m going to include at the end of the video, a link to an article where you can read more about how you can create this education program for your team, but remember, this is a 2020 sort of special opportunity. but remember, this is a 2020 sort of special opportunity. You can always have the education program, but the fact that you can do this and actually pay their student loans directly is a 2020 special, that for many of your employees, may make a huge difference. They may really love the fact that they’re able to nip away at their debt in this year of all years. So, watch for the link at the end of the video, read more about it, and hopefully, it might be something that you can do for your team. All right? I’ll talk to you next week.

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