May 2025

HomeMy TotalSource®Compliance CornermyLearningNewsletter Archives
 

News

Your employees might earn a Federal Earnings Income Tax Credit

02/06/25

Author: ADP Admin/Monday, February 3, 2025/Categories: Compliance Corner , Federal Compliance Update

We're reaching out to share some exciting news about an important tax benefit your employee might be eligible for— the Federal Earned Income Tax Credit (EITC). We thought you would want to know this benefit is designed for certain working individuals and families.

Note: Under federal law, employers must notify an employee of the EITC if the employee worked for them at any time during the year and they didn’t withhold income tax from the employee’s wages. However, this requirement doesn’t apply if the employee claimed exemption from withholding on Form W-4, Employee’s Withholding Certificate.

If your employee makes $60,000* or less, you should have notified them at the time of hiring of the potential availability of Earned Income Tax Credits. EITCs are reductions in federal income tax liability for which they may be eligible if they meet certain requirements. Additional information and forms for these programs can be obtained from the Internal Revenue Service.

To receive the federal EITC, they must file a federal tax return and fill out the EITC form, which can be found in the Federal Income Tax Return Booklet. For additional information on their eligibility to receive the federal EITC and other federal antipoverty tax credits, contact the IRS at 1-800-829-1040 or visit the IRS Website at www.irs.gov. Visit this state EITC information for additional information.

Number of views (1722)/Comments (0)

Tags: Compliance Corner02/06/25

Upcoming Events

Regional Alerts

Compliance Corner , State Compliance Update, California

The California Department of Industrial Relations (DIR) has revised emergency rules related to protecting workers from COVID-19. The revisions are effective immediately.

> Read more

Compliance Corner , State Compliance Update, Connecticut

Connecticut has enacted legislation (House Bill 5158) that expands the state's requirements for providing lactation breaks to employees. House Bill 5158 takes effect on October 1, 2021.

> Read more

Connecticut has enacted legislation (House Bill 6380) that requires employers to, among other things, provide applicants with the wage range for positions. House Bill 6380 takes effect on October 1, 2021.

> Read more

Compliance Corner , State Compliance Update, Hawaii

Hawaii has enacted legislation (House Bill 125) that generally prohibits employers from asking or requiring employees to disclose the login information to their personal online accounts, such as social media. House Bill 125 is effective immediately.

> Read more

Compliance Corner , State Compliance Update, Maryland

Maryland has enacted legislation (House Bill 581) requiring "essential employers" to take certain steps during a public health emergency, including providing paid leave to essential employees if public funding becomes available. House Bill 581 is effective immediately.

> Read more

Maryland has enacted legislation (House Bill 56) that expands the state's Flexible Leave Act to also cover bereavement. House Bill 56 takes effect on October 1, 2021.

> Read more

Maryland has enacted legislation (House Bill 1154) that amends and clarifies requirements for notifying the state and workers before reductions in operations. House Bill 1154 takes effect on October 1, 2021.

> Read more

Compliance Corner , State Compliance Update, Massachusetts

Massachusetts has enacted legislation (House Bill 3702) that requires all employers to provide COVID-19 emergency paid sick leave. Employers that provide the leave may request reimbursement from the state's COVID-19 Emergency Paid Sick Leave Fund. The leave requirement will expire when the $75 ...

> Read more

Compliance Corner , State Compliance Update, Montana

The state of Montana has enacted legislation (House Bill 655) that amends employer drug testing rules. House Bill 655 takes effect on July 1, 2021.

> Read more

Compliance Corner , State Compliance Update, Nevada

Nevada has enacted legislation (Senate Bill 209) that amends its paid leave law to require paid leave for COVID-19 vaccination. Senate Bill 209 is effective immediately and is set to expire on December 31, 2023.

> Read more

Compliance Corner , State Compliance Update, New Hampshire

New Hampshire enacted legislation (House Bill 258) that allows employers to retain wage and hour records electronically. House Bill 258 takes effect on June 22, 2021.

> Read more

Compliance Corner , State Compliance Update, North Dakota

North Dakota Governor Doug Burgum has signed legislation (HB 1465) that addresses rules pertaining to vaccination status. HB 1465 is effective immediately.

> Read more

Compliance Corner , State Compliance Update, Pennsylvania

Pennsylvania Governor Tom Wolf has signed legislation HB203, also known as the Living Donor Protection Act, or "the Act" that will provide unpaid leave to eligible employees for surgery related to organ or tissue donation. The Act takes effect June 26, 2021.

> Read more

Compliance Corner , State Compliance Update, Rhode Island

Rhode Island has enacted legislation (House Bill 5130A) that will raise the state's minimum wage in phases, eventually reaching $15 per hour.

> Read more

Compliance Corner , State Compliance Update, Tennessee

Tennessee Governor Bill Lee has signed House Bill 785, which protects employers from negligent hiring lawsuits under certain circumstances. House Bill 785 is effective immediately.

> Read more

Compliance Corner , State Compliance Update, Washington

Washington Governor Jay Inslee has signed Senate Bill 5115, also known as the Health Emergency Labor Standards Act (or HELSA). The HELSA expands worker protections during a public health emergency and requires employers to follow certain notice requirements. Senate Bill 5115 is effective ...

> Read more




 

 

© Copyright 2016 ADP LLC. 10200 Sunset Drive | Miami, FL 33173

You are receiving this email because you are a client of ADP TotalSource. ADP, the ADP logo, and Always Designing for People are trademarks of ADP, Inc. All other marks are the property of their respective owners. Copyright © 2025 ADP, Inc.