HR Compliance Tracker

HR compliance tracker.jpg

Big changes are happening in the realm of workplace compliance issues and labor laws in the United States. Noncompliance with government regulations can have serious consequences—and can cost your business big time. Keep up with what's happening between the government and the workplace with the HR Compliance Tracker: your go-to place to stay updated on some major workforce compliance issues.

 

IRS ruling allows employers to match employees’ student loan payments into their 401(k)

In a letter released publicly in mid-August, the IRS signaled its willingness to allow employers to contribute to 401(k) accounts for employees who aren’t able to make contributions on their own, provided the employee is making qualified student loan payments. This is huge news for younger employees, and particularly for Millennials, who are saddled with historically high student loan debt.

According to Pew research, only 52% of Millennial employees are currently contributing to their own retirement accounts, often because of the heavy financial burden of student loan repayment. A 401(k) benefit tied to student loan repayment would allow these employees to take advantage of employer contributions to prepare for retirement, as long as they’re currently paying down the balance on their student loan debts. This benefit could serve as a useful recruiting tool for employers looking to prove their employee-friendly bona fides. Read the IRS’s ruling here to learn more.

Topics: HR News