Smart employers recognize the cost to keep employees is far less than the cost replace and retain. In fact, recent research indicates it costs 200% of a key employee’s salary to fill their seat when they leave. Retain your talent by offering the benefits they care about most, like the overwhelming task of saving for college.
Thanks to new Colorado legislation, businesses now get a tax credit when they contribute to their employee’s CollegeInvest accounts. Colorado is one of only a handful of states that offer an incentive to our companies.
How does this work?
What does this new legislation do?
This new legislation incentivizes employers to get involved with their employee’s savings goals for higher education by giving the employer a tax credit.
How does the tax credit work?
For every dollar an employer contributes to an employee’s CollegeInvest 529 account, the employer receives a 20% tax credit, up to a maximum of $500 per employee per year. So, an employer could give up to $2,500 per employee and receive $500 for each person.
Why should I add this as a new benefit?
Colorado families tell us that they’re already saving as much as they possibly can. This is a great new option that can be added to your benefit package to help attract and retain the best talent. You can help be part of their future!
What options do I have to contribute to my employee’s account?
One of the great things about this new law is the flexibility it gives to employers. It could be structured as a match, like some retirement plans. It can be done one time, annually, or each pay period. Maybe it’s a better way to celebrate the birth or adoption of an employee’s child than a gift card. A reward for a long-time employee or part of a welcome package for a new hire. Did you know that almost anyone can be a beneficiary? It could be an employee’s child, grandchild, niece, nephew or other family member. Or for the employee themselves if they want to complete a degree or pursue other higher education options.
Is there a minimum/maximum contribution?
Some plans have very low minimum contributions (like $25). Employers can give as much as they’d like, but your tax credit is maxed out at $2,500 contributed per employee.
Can I contribute directly to my employees’ 529 accounts?
Yes! It’s very easy and our team can help you with the details.
How do I implement this program?
Call (303) 376-8856 or email firstname.lastname@example.org and Melissa Marshall will set up a time to walk you through the program and give you some great tips on how to implement it.
Is there a minimum number of employees needed to participate?
No. Any size company can participate.
How do I communicate to my staff about this new benefit?
Let us host a lunch and learn at your office to educate your staff about CollegeInvest.
We can also help you with materials, copy for e-blasts, breakroom posters, flyers, etc.