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Employer EITC State Notice Requirements

The Earned Income Tax Credit is a Federal program that provides benefits for some low to moderate-income workers. The IRS, eight states and one locality have adopted requirements that employers notify all or some of their employees working in those states of the EITC program and their potential eligibility to receive benefits. Below is the listing of jurisdictions with these laws and their respective requirements. 

Federal

Provide written notice to each employee who worked for you and had no income tax withheld unless they claimed Exempt on their W-4.  Must be provided on either an IRS or Substitute W-2 with the EITC notice included, or on a separate Notice 797 or written statement with the same wording as Notice 797. Finish annually on W-2 or separately by 2/7 for workers without W-2 issued. 

Source: Notice 1015

California

Employers who provide unemployment insurance to employees are required to notify all employees they may be eligible for EITC benefits. The notice must be mailed or handed to the employee and should include language provided by the CA Employment Development DepartmentThe notice should be furnished annually within one week before or after providing an annual earnings summary (W-2 or 1099)

Sources: Bill AB 650: Chapter 606

EDD Year-End Notice Requirements

Illinois

Employers who are subject to and provide unemployment insurance to their employees shall provide EITC notifications to eligible employees. Employers are not required to notify employees who receives gross wages from that employer that exceed the maximum amount that may qualify for the credit. The language for the notice is provided in the IL EITC Information Act and should be updated annually. 

Source: EITC Information Act

New Jersey

All employers must provide written notice to potentially eligible employees of the ability of both the federal and New Jersey Income Tax Credits (EITC). Employers must distribute this notice to employees each year to coincide with the distribution of Form W-2. Employers are only required notify employees who they know, or reasonably believe, may be eligible for the credit based on the employee’s prior year wages. Must be furnished between January 1 and February15 each year. 

Sources: NJ Notice to Employers

NJ Code Chapter 210

Texas

Companies that employ one or more employees must notify their employees of the federal EITC program. Employer may use IRS Notice 797 or a written statement with the same wording as IRS Notice 797 when notifying employees. Notification must go out by March 1 each year. 

Source: EITC Notification

Louisiana

Employers are required to notify new employeeswhose anticipated wages are less annually than the current max wages for eligible creditat the time of hiring that they may be eligible for the EITC or AEIC. Employers shall also post, in the same location where other employee notices are required by state or federal law are posted, a notice provided by the Louisiana Workforce Commission. 

Source: LA Regs 1018.2

LA EIC Posters

Maryland

Employers must notify each employee who may be eligible for the federal or state earned income tax credits. The employer may provide this notice to either all employees or to those employees with wages that are less than or equal to the maximum income eligibility for that year. Employees must be notified by December 31 each year. 

Sources: EITC Information Requirement

EITC Information Act

Virginia

Employers shall post in the same location where other employee notices required by state or federal law are posted any notice provided by the Virginia Department of Social Services that informs employees that they may be eligible for federal and state earned income tax credits and may apply for the credit on their tax returns or receive the credit in advance payments during the year.

Source: Code of VA 40.1 Chap 3

Oregon – New in 2017

Employers must send information to employees about EITC at the same time as the federal Form W-2. The language for this notice is provided by the Oregon Bureau of Labor and Industries. The notice must be in English and the language the employer typically uses to communicate with the employee. The notices should be provided annually by February 1

Sources: EITC Notice Requirements

Oregon SB 398

Philadelphia

Businesses are required to send notifications to their employees regarding the Federal Earned Income Tax Credit. Employer must furnish to employees the Department of Revenue notice that provides details regarding the free tax preparation and filing services offered by the city. These notices must be provided by February 1 each year. 

Sources: Phila Notice to Employers

Phila Code 19-1508