Why Companies Like Starbucks, Taco Bell, Disney And Cigna Are Paying For College: A Better Bottom Line – Forbes
Major companies that pay for employees to attend college are discovering multiple benefits from those investments, and many are now expanding their tuition assistance plans to increase the gains.
Employers have offered education assistance benefits for decades, but recent results about the impact of such plans are stimulating greater interest. It’s estimated more than 60% of U.S. companies offer financial assistance to employees to further their education, a trend that’s picked up steam the past five years following a lull during the financial crisis of 2008-09.
Paying for employees to attend college is popular largely because of its favorable treatment under IRS section 127, which allows employers to deduct tuition payments as a business expense and permits employees to exclude from taxable income up to $5,250 annually in eligible education reimbursement. A great win-win to be sure, but here are five other documented impacts of employer-provided college.