May 2025

 

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 (1753)/Comments (0)

Upcoming Events

Regional Alerts

Delaware has enacted legislation (Senate Bill 32) that expressly prohibits employers from discriminating against individuals based on hair texture and protective hairstyles. Senate Bill 32 takes effect immediately.

> Read more

Illinois has enacted legislation (Senate Bill 1480) that restricts the use of conviction records for employment purposes. Senate Bill 1480 took effect immediately.

> Read more

The Illinois Department of Labor (IDOL) has provided guidance on providing employees pay, leave, and flexibility so they can get the COVID-19 vaccination.

 

> Read more

Kentucky has enacted legislation (House Bill 210) that amends and expands a state law that requires employers to provide leave to employees who adopt a child.

> Read more

Michigan has enacted legislation (House Bill 4047) that will provide funding to continue and expand hazard pay for direct care workers.

> Read more

The New Jersey Supreme Court has clarified the scope of the state's Pregnant Workers Fairness Act (PWFA).

> Read more

The New Jersey Department of Labor (NJDOL) has released guidance clarifying the circumstances in which employers may require their employees to receive the COVID-19 vaccination prior to returning to work.

> Read more

New Mexico has enacted legislation (Senate Bill 35) that will require employers to pay high school workers at least the minimum wage per hour.

> Read more

New York Governor Andrew Cuomo has signed Senate Bill S854A also known as the Marihuana Regulation and Taxation Act (the Act) into law. The Act, which is effective immediately, legalizes recreational marijuana use and establishes employment protections for recreational marijuana users.

> Read more

The Oregon Bureau of Labor and Industries (BOLI) has recently released guidance on the Oregon Family Leave Act (OFLA) in the form of frequently asked questions.

> Read more

The Fifth Circuit Court of Appeals in Texas has ruled that employers are prohibited from discriminating against LGBTQ workers under the Texas Commission on Human Rights Act (TCHRA).

> Read more

The cities of Dallas and San Antonio, Texas enacted ordinances that would require employers to provide paid sick leave to covered employees.

> Read more

West Virginia has enacted Senate Bill 272, also known as the West Virginia Employment Law Workers Classification Act (the Act). The Act takes effect on June 9, 2021.

> 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.