Today, LeadMN President Axel Kylander, testified in the Senate Tax Committee on SF3314.
Originally passed as part of the CARES Act in March of 2020, and later extended in the Consolidated Appropriations Act, enacted in December 2020, employers and employees can both receive tax benefits for employer payments made on qualified student loans. This law allows an employer to pay up to $5,250 of an employees student loan payments within a single year and receive a federal payroll tax exclusion on that amount. The employee also receives a federal income tax exclusion on the payments up to $5,250.
SF3314 would align state tax laws to ensure that employees and employers are not charged state taxes on any qualified payments made on an employees student loans.
"Over 775,000 Minnesotans currently hold $26 billion in student loan debt. This is debt that is holding thousands back from purchasing homes, starting families, creating small businesses, and participating in their local economies." - Axel Kylander
See Axel's full testimony below (starting at 45:28).