On January 20, President Biden requested that the Secretary of Education extend COVID-19-related relief for federal student loan borrowers. The U.S. Department of Education has indicated on its Coronavirus and Forbearance Info for Students, Borrowers, and Parents website that the relief will be extended at least through September 30, 2021. Without the extension, the relief measures would have expired on January 31.
During this extension of the payment suspension, collections on defaulted, federally held loans are still halted, and any borrower with defaulted federally held loans whose employer continues to garnish their wages will receive a refund of those garnishments.
New Administration May Have Big Impact on Payroll
The Biden administration has many priorities that, if implemented, will have a big impact on payroll professionals. Some of these policy initiatives include: adjusting the income tax benefits for participation in retirement plans such as 401(k) plan, raising the federal minimum wage to $15 an hour, and reforming labor provisions relating to joint employer status.
Read Payroll Currently for coverage of payroll-related legislative and regulatory developments under the new administration.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Curtis E. Tatum, Esq., is Director of Federal Payroll Compliance for the APA.