SEPTEMBER 2020HR TECH OUTLOOK9the end of 2020. 3 That means employers don't have to pay payroll tax in addition to the employee not having to pay income tax on those contributions. Before the CARES Act made that possible, nearly a third of that money would go to waste in the exact same programs due to taxes. That's big!The problem is the student loan crisis is bigger. A Band-Aid alone can't fix it. That's because the cycle of financial illness that goes along with it--Americans living paycheck to paycheck, going into debt, and living above their means--points to the real issue: behavior.Sure, Congress taking steps to cut student loan borrowers a break during a financial crisis is helpful in the moment. But it does nothing to fix the real problem your employees are having. And it's not stopping them from bringing the stress of it all into work with them. How do you think they would have paid their student loan bills had the government not thrown them a bone? History repeats itself, and their credit histories point to debt being their answer. They need a plan to help them break the cycle.The Right Answer Is Financial WellnessAt SmartDollar, we believe that a lack of financial wellness isn't a math issue. It's a heart issue. Real, lasting financial change begins and ends with behavior. So, for employers weighing the costs of offering financial wellness to their teams or thinking of offering a student loan employer program, they should remember that financial behavior is what will dictate whether or not their team will win with money.As an employer, you're uniquely situated to help your people get out of debt and take control of their money once and for all. That's why we created our Guide to Workplace Student Loan Programs: to help employers like you know how they can help with their employees' student loan debt and understand the issues around it. AccessYour Guide. At SmartDollar, we believe that a lack of financial wellness isn't a math issue. It's a heart issue
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