We offer Certified Registered Nurse Anesthetists (CRNAs) assistance with paying off their outstanding education loans for degrees required for their position.
How to apply
New staff will have 30 days from their start date to submit an application form to Employee Relations. A complete application consists of the application request form, an updated loan agency statement supporting the loan debt at the time of enrollment that includes the employee’s name, account number and payment address, as well as a copy of the employee’s degree or diploma.
|Upon completion of 1st full year of service||$12,000|
|Upon completion of 2nd full year of service||$12,000|
|Upon completion of 3rd full year of service||$12,000|
|Upon completion of 4th full year of service||$14,000|
How payment will be made
One year after Employee Relations approves the request, the employee needs to submit an updated outstanding loan agreement that includes: employee’s name, account number, payment address and balance due. A check will be processed and sent directly to the loan agency for the approved amount. This process will be repeated each year for a maximum of four years.
How are taxes deducted
Under federal and state tax regulations, this loan payment is considered taxable income to the employee, and is subject to required income tax and payroll tax withholding by the employer. Because the Hospital/Clinic deem the total benefit to be earned over the year prior to the actual generation of the check to the loaning institution, applicable taxes will be withheld from the employee’s paychecks during the year of service prior to the actual payment.
This withholding will apply to each paycheck over 26 pay periods, will satisfy tax rules, and will serve to spread the tax liabilities over an extended period to minimize the impact of the tax liabilities on an employee’s cash flow. Employees who leave the institution within the twelve month period must inform Employee Relations with their last day of employment and issue an updated loan agreement. The employee will receive a prorated benefit and a partial payment will be made to the loaning institution.
Listed below is an estimated example of what the total tax amount due from the employee would be based on a payment of $12,000 to the loan agency. This is only an example. Depending on each individual situation, the taxes may be different.
|Federal withholding tax||22%||$3,000.00|
|Total taxes to be withheld are $3,678.25 or $141.47 per month.
(Note: For Vermont residents, this amount would increase with the addition of Vermont tax.)