Employer Provided Educational Assistance
The Association supports making section 127 of the Internal Revenue Code permanent. Section 127 permits employees to exclude up to $5,250 of employer-provided educational assistance. Such assistance is a valuable training and re-training tool that benefits both employers and employees. Studies show that Section 127 programs are used by lower and mid-level employees at a very modest cost to the federal government. The average recipient earns less than $30,000 per year. It is an important tool to train the workforce and has long-term implications for the success of the entire workforce. Over the years, Congress has extended the exclusion many times but has not made the provision permanent.
Taxation of Tuition Reimbursement Resolution
WHEREAS, Section 127 of the Internal Revenue Code allows employees to exclude up to $5,250 of employer-provided educational assistance; and
WHEREAS, studies have demonstrated that Section 127 programs are utilized by lower and mid-level employees at a very modest cost to the federal government; and
WHEREAS, the International Personnel Management Association-U.S. recognizes the importance and benefits of educating its employees; now therefore, be it
RESOLVED, that the International Personnel Management Association-U.S. supports legislation that would make Section 127 permanent.