How It Works

    Your Plan,
    Live in 48 Hours

    BenefitPlus handles plan documents, compliance, payments, and reporting. You approve the plan and set the contribution amount. There is no cap on how much you can contribute.

    See ROI Calculator
    BenefitPlus Program Impact dashboard showing $418,600 total contributions, $244,800 YTD, and $120,557 in estimated tax savings for Acme Healthcare Partners with 26 employees enrolled
    48hr
    Average launch time
    5min
    Employee enrollment
    $5,250
    Tax-free per employee
    ∞
    No cap on contributions

    New to student loan repayment benefits? Under IRS Section 127, employers can contribute toward employee student loan payments with the first $5,250 per year completely tax-free for both sides. Want to contribute more? There is no cap. Amounts above $5,250 are treated as taxable wages. The One Big Beautiful Bill Act of 2025 made this provision permanent.

    Step by Step

    Four Steps to Launch

    From first conversation to first payment. Here is exactly what happens.

    01
    Day 1

    Set Up Your Plan

    We generate your IRS-required Section 127 plan document and configure eligibility rules. No lawyers, no outside counsel.

    Plan document with nondiscrimination provisions and corporate resolution block.
    Eligibility rules by office, department, position, tenure. Highest-amount-wins is automatic.
    Set any contribution amount. Monthly recurring, annual lump sums, or large one-time payments for recruitment. The platform tracks each employee's annual total against the $5,250 tax-free threshold automatically.
    Compliance built in. Nondiscrimination testing, 5% owner limits, notifications.
    Plan Document
    Section 127
    Plan type and effective date
    Eligibility requirements
    Nondiscrimination provisions
    Benefit amounts
    Corporate resolution
    Progress80%
    02
    Day 1-2

    Employees Enroll

    Each eligible employee gets a branded email with a single link. No app, no paperwork. Five minutes start to finish.

    Single-link enrollment. Click, verify, connect loans. No app required.
    Bank-level encryption. Federal loan holders can upload MyStudentData directly.
    Automatic eligibility check. Tenure, position, department verified against your rules.
    Roster Summary showing 26 enrolled, 2 paused, 2 inactive, 3 invited, 1 ineligible, 1 removed out of 35 total employees
    03
    Monthly, Automatic

    Payments Flow

    Contributions route through custodial escrow directly to each loan servicer. Recurring payments and one-time signing bonuses both work.

    Custodial escrow. Payments initiate on the 21st, targeting the 1st of the following month.
    Direct-to-servicer. Every dollar goes to the loan servicer. Employees never touch funds.
    Flexible payment types. Recurring monthly contributions, one-time payments, and signing bonuses all flow through the same system. The tax-free threshold is tracked per employee automatically.
    Failure handling. Bounced payments flagged instantly. Employees auto-pause until resolved.
    Monthly Recurring Spend breakdown showing Downtown Women's Clinic $4,850/mo, Northside Family Practice $1,950/mo, Corporate $800/mo, Total $7,600/mo
    04
    Ongoing

    Track, Report, Stay Compliant

    Real-time visibility into contributions, tax exposure, and compliance. W-2 data export-ready at year end.

    Contribution tracking by employee, office, department. Recurring and one-time separated.
    Tax center. Proactive alerts at the $5,250 threshold. Overages flagged for W-2 reporting.
    W-2 support. Export-ready data with box-level instructions for payroll.
    Compliance dashboard. Plan doc, testing, notifications, retention in one view.
    Contribution Trend chart showing recurring monthly bars and one-time payment markers from Nov 2025 through Mar 2026

    No Cap on What You Can Contribute

    The $5,250 annual figure is a tax-free threshold, not a limit. Contribute any amount. The first $5,250 per employee per year is completely free from federal income tax, FICA, and state tax in most states.

    Above $5,250, contributions are treated as taxable wages to the employee. BenefitPlus tracks each employee's annual total against the threshold automatically.

    Recurring
    Monthly Contributions

    Automatic payments applied to your employees' student loans every pay period. Set the amount per employee and the platform handles the rest.

    One-Time
    Lump Sum Payments

    Signing bonuses, retention awards, or any single payment applied directly to an employee's student debt.

    Common Questions

    What Employers Ask

    Clear answers to the operational questions HR leaders and CFOs ask most.

    Ready to launch your plan?

    Most employers go live within 48 hours. No long implementation, no payroll changes, no outside counsel.

    Section 127 Guide

    No obligation · IRS-compliant setup in days · Cancel anytime