Nontaxable Student Loan Repayments in the Web-based Special Payroll Processing System (SPPS Web)

Reference Number: NFC-24-1722354447
Published: September 26, 2024
Effective: Pay Period 19, 2024

Summary

This bulletin is a reminder that Web-based Special Payroll Processing System (SPPS Web) is used to process nontaxable employer contributions for student loan payments under the Coronavirus Aid, Relief, and Economic Security (CARES) Act until December 2025. These payments are nontaxable for both employer payroll purposes and employee income tax purposes.

Implementation

The nontaxable student loan amount cannot exceed $5250 per year and can be processed any time before December 2025. The nontaxable student loan repayment plus taxable student loan repayment amounts cannot exceed the Agency allowable amount per calendar year.

Resources

The SPPS Web Procedure Manual, is available online at the NFC Home page. To view and/or print this procedure, select HR and Payroll Clients from the MyNFC drop-down menu. At the HR and Payroll Clients page, select the Publications tab and select NFC System Documentation to access the procedure manual.

Bulletin NFC-20-1593604800 issued July 1, 2020 provides additional information and can be found on the NFC Home page.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.