What CEOs Need to Know About Tax Advantages for Offering Financial Wellness Benefits

For CEOs leading nonprofit hospital systems, the pressure to attract and retain talent while managing operational costs is nothing new. But one area often overlooked in strategic planning is the financial wellness of your workforce—and the tax advantages that come with supporting it.

At a time when healthcare workers face mounting financial stress, offering employee financial wellness benefits is not just a perk—it’s a smart investment. These programs not only improve morale and retention, but they can also provide valuable tax advantages for your organization.

Financial Wellness as a Strategic Advantage

Nonprofit hospital employees—particularly those in public service roles—are often eligible for Public Service Loan Forgiveness (PSLF) and other federal repayment programs. Yet navigating these programs is complex, and many staff miss out due to lack of support. By offering financial wellness tools, like student loan guidance or one-on-one financial coaching, you can help your employees access life-changing savings while reinforcing your commitment to their well-being.

That’s where the opportunity lies—not just in doing the right thing, but in doing it strategically.

Key Tax-Saving Opportunities

1. Student Loan Repayment Assistance (SLRA) – Up to $5,250 Tax-Free
   Thanks to legislation made permanent in the Consolidated Appropriations Act of 2021, employers can now contribute up to $5,250 per employee per year toward student loan repayment—tax-free for both the employer and the employee. This benefit is treated like educational assistance under IRS Section 127.
   
   
2. Pre-Tax Educational Benefits
   Tuition assistance and other qualifying educational expenses can also be provided pre-tax under the same Section 127 guidelines, further extending the financial support your hospital can offer employees while reducing taxable income.
   
   
3. Improved Retention = Reduced Turnover Costs
   While not a direct tax break, financial wellness benefits contribute to employee satisfaction, reducing costly turnover. For hospitals where replacing a single nurse can cost up to $60,000, the ROI is clear. These savings may not show up on your tax forms—but they will in your bottom line.

Aligning Financial Wellness with Your Mission

Offering financial wellness benefits also reinforces your hospital’s nonprofit mission: serving the public good. These programs demonstrate that you value the financial health of your workforce as much as their physical and mental well-being. That alignment builds trust internally—and strengthens your hospital’s brand externally.

Let’s Make It Easy

At PeopleJoy, we specialize in helping nonprofit hospital systems implement turnkey financial wellness programs that support PSLF, student debt repayment, and long-term financial health. We also help HR and benefits teams track impact, improve engagement, and ensure compliance—so you can deliver meaningful value without adding administrative burden.

Bottom line: Financial wellness isn’t just good for your people—it’s smart business. And it comes with real tax advantages your system can’t afford to ignore.

Ready to explore how your hospital can benefit?

Let’s talk. hello@peoplejoy.com