Keith Boyer CPA's Blog

Topics and tips about accounting, taxes, business to personal finance and more!

What are the most tax-advantaged ways to reimburse employees' education expenses?

     Reimbursing employees for education expenses can both strengthen the capabilities of your staff and help you retain them. In addition, you and your employees may be able to save valuable tax dollars. But you have to follow IRS rules. Here are a couple of options for maximizing tax savings.   A fringe benefit qualifying reimbursements and direct payments of job-related education costs are excludable from employees’ wages as working condition fringe benefits. This means employees don’t have to pay tax on them. Plus, you can deduct these costs as employee education expenses (as opposed to wages), and you don’t have to withhold income tax or withhold or pay payroll taxes on them. To qualify as a working condition fringe benefit, the education expenses must be ones that employees would be allowed to deduct as a business expense if they’d paid them directly and weren’t reimbursed. Basically, this means...
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Howard Froman

We lost a friend and mentor yesterday with the passing of Howard Froman.  Many of us will remember the years at First Investors from where is encouraged us to live up to our potential and told us that we could.  Many of you came to us through Howard.  We treasure our relationship with each one of you and our relationship with the family.  Arrangements will be handled through Frank E. Campbell in Manhattan.   -Keith
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