1.How well does your education assistance program qualify under IRC §127, allowing up to $5,250 per year in tax-free employer-paid education benefits?
2026 §127 limit: $5,250 per employee per year. Benefits above this limit are taxable. The program must be in writing and non-discriminatory.
2.How well does your eligible expense list reflect current workforce education needs, including undergraduate, graduate, professional certifications, and skills training?
Under §127, eligible expenses include tuition, fees, books, and supplies. Job-related and non-job-related education are both eligible.
3.How well does your education assistance program include a repayment provision for employees who leave shortly after completing education?
Repayment provisions (typically 1–2 years of service required) protect the employer's investment. They must be clearly communicated and consistently enforced.
4.How equitably accessible is your education assistance program across all employee levels, including hourly and part-time workers?
Education assistance programs often have low utilization among hourly and part-time workers due to eligibility restrictions and application complexity.
5.How well do you track education assistance utilization and measure the impact on retention and skill development?
Annual utilization analysis with retention data for participants vs. non-participants is the benchmark for measuring program ROI.
This tool provides educational decision support only. Results are not legal, tax, actuarial, or insurance advice. Validate all outputs against current plan documents, applicable law, and qualified professional guidance. Scoring version 1.0 · Reference year 2026.
