Have You Told Your Employees About the Earned Income Credit (EIC)?

Have you told your employees about the Earned Income Credit (EIC)? The EIC is a refundable tax credit for certain workers. IRS Notice 1015 (Rev. December 2007) advises employers that they must notify the following workers about the EIC, “[E]ach employee who worked for you at any time during the year and from whom you did not withhold income tax. However, you do not have to notify any employee who claimed exemption from withholding on Form W-4, Employee’s Withholding Allowance Certificate. Note. You are encouraged to notify each employees whose wages for 2007 are less than $39,783 that he or she may be eligible for the EIC.” The current Form W-2 contains the notice on the back of the employee’s copy. Alternatives are also available at www.irs.gov/pub/irs-pdf/n797.pdf .

For more information, please contact Kim Walker at  941-329-6628 or kwalker@williamsparker.com.