What is College Bound?
We use code section 127 Qualified Educational Assistance Plans to help employers in the restaurant, hotel, grocery, retail, health care, long term care, entertainment and fast food restaurant industries to leverage the value of “Loyalty Economics” to dramatically improve their part-time, teenage and college age employee retention.
These employer groups fill 60% to 80% of their company positions with employees who are 16 to 24 years old and who give an average length of service anywhere from 8 to 16 months. In service oriented organizations like these, increased productivity and profits come from leveraging loyalty. You can’t leverage employee loyalty if your employees turn over every 8 to 16 months. We use the College Bound Program to increase that length of service average by 200% to 300%!
We also use code section 127 Qualified Educational Assistance Individual Plans to help small, family run businesses to finance the ever increasing costs of college through the family business. The self-employed small business owner has a unique opportunity to take advantage of this tax exempt benefit to pay for the college expenses of their adult children or grandchildren. This can provide a significant advantage for small employers when paying tuition bills.
Finally, we work with select financial advisors who have attained the Certified College Planning Specialist designation to promote the College Bound Program benefit in their markets, opening the door to additional opportunities for their business through partnering with the College Bound Company.
The Default Model Verses Our Model
Code section 127 plans are qualified employer educational assistance plans that allow employers to offer up to $5,250.00 per year to employees in tax-free educational assistance.
Benefits are tax-free to the employee and also, exempt benefit payments for the employer. That means, no federal, state, local or FICA tax for the employee and no FICU, FUTA, SUTA or Work Comp expenses for the employer.
College Bound, Inc. offers two types of section 127 Plans; Corporate Plans and Small Employer Plans.
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Jim Northam started in the financial services industry in 1988 as an agent with Northwestern Mutual Life in Rochester, MN. He moved into operations with Northwestern Mutual in 1990 and was responsible for all operational, financial and reporting functions for the Southern Minnesota General Agency of Northwestern Mutual and for Southern Minnesota Employee Benefits Specialists.
The College Bound Company was established in 1995. College Bound, Inc. is a Third Party Administrator of Employer Educational Assistance Plans. The College Bound Program is a qualified plan under code section 127 of the internal revenue code that allows employers to provide educational assistance benefits to employees. College Bound, Inc. is the administrator for these employer plans. The College Bound Program is one of the few plans in the country designed to bring this tax exempt benefit to high school and college age employees. College Bound student employee participants have been paid over 1.5 Million dollars in qualified plan tuition payment or reimbursement benefits to date. Jim is responsible for all aspects of managing and developing the College Bound Program.