Archive Monthly Archives: August 2018

IRS Permits Students Loan

IRS Permits Student Loan Repayment Benefit as Part of Employer’s 401(K)

On August 17, 2018, the federal Internal Revenue Service released a private ruling letter (Number 201833012) concluding that an employer may amend its 401(k) plan to provide student loan repayments (SLR) nonelective contributions under the program without violating the “contingent benefit” prohibitions of 26 U.S.C. § 401(k)(4)(A) and § 1.401(k)-1(e)(6).

The ruling assumes that the employer will

not extend any student loans to employees eligible for the program and details how SLR payments may be linked to the employer’s 401(k) plan.

The ruling is directed only to the employer (referred to in the letter as an “individual taxpayer”) who requested it and may not be used or cited as precedent. However, the private ruling carries significant weight because it permits a new type of student loan repayment through an employer’s 401(k).

Are we required handbook

Are We Required to Provide Handbooks In Spanish?

If we have a substantial number of Latino employees, are we required to provide our employee handbook in Spanish?

While providing an employee handbook in additional languages — or having an employee handbook at all — is not a requirement, it is a 

best practice if a significant portion of your workforce is not fluent in English. Generally, if you have 10 percent or more of your workforce speaking a language other than English (in your case, Spanish), we recommend making your handbook available in that language.

The same goes for any type of accommodation you may want to make if a substantial number of your employees need it to receive the information in your handbook. This includes writing to a low literacy level, or providing it in braille or audio tape for the visually impaired.

Remember that an employee handbook gives you the best opportunity to clearly communicate your company policies, outline expectations for employees to follow, and help protect you from liability. In some cases, such as with antiharassment policies, the failure to communicate the policy in the language that your employees speak may increase your risk of liability in the event of a lawsuit.

For more information, contact the Congruity HR team of professionals at : 844.247.4100.