© 2021 American Payroll Institute, Inc. State and Local Earned Income Tax Credit Notice Requirements Eto mployers must comply with federal and state requirements send notices about the Earned Income Tax Credit (EITC), even though employees no longer receive advance payments of the credit as of 2011 (see The Payroll Source®, §6.6). The IRS has released the tax year 2020 EITC income limits and maximum credit amounts. Eight states and one city require notice There are eight states and one city that require employers to provide separate EITC notifications to their employees, in addition to the required federal notice (see APA’s Guide to State Payroll Laws, Table 4.3): In California, the notice must be given within one week before or after, or at the same time that the employer provides a Form W-2 to the employee. A sample notice is available on the California Employment Development Department website. Employers also are required to notify employees regarding the state EITC. The language of the state EITC notice is included in California law and it is similar to the sample already mentioned. State EITC information is available on the California Franchise Tax Board website. There is also a webpage dedicated to the state EITC with more information for employees. In Illinois, the notice must be given within one week before or after, or at the same time that the employer provides a Form W-2 to the employee. A sample notice is contained in Illinois law (820 ILCS §170/20). The notice must be updated annually to reflect the maximum EITC and the maximum earnings to which such tax credit will apply. Information is also available on the Illinois Department of Human Services website. In Louisiana, any business establishment that has 20 or more full-time or part-time employees must provide the notice to employees at the time of hiring. The Louisiana Workforce Commission provides an Earned Income Credit poster on its website. The new 2020 poster is now available. In Maryland, the notice must be given by December 31 of each year. Employers may develop their own notice or use a sample notice provided by the Maryland Comptroller’s Office (see Maryland Employer Withholding Tax, Tax Alert 20-10, for a sample notice). In New Jersey, the notice must be given to potentially eligible employees between January 1 and February 15 of each year to coincide with the employer’s distribution of Forms W-2. The written notification must use the statement developed by the State Treasurer, which is available online. In Oregon, notice must be given annually with the employee’s federal Form W-2. More information and sample language is available from the Oregon Bureau of Labor and Industries on its website. In Texas, the notice must be given no later than March 1 of each year. The Texas Workforce Commission provides information about EITC notification on its website. In Virginia, the notice must be posted in the same location where other employee notices required by state or federal law are posted. The Virginia Department of Social Services provides employer posters and other information on its website. City requirement. A notice must be given to all employees and independent contractors who live or work in Philadelphia at the same time that the employer provides a Form W-2 to the employee. A sample notice and an official flyer are available on the Philadelphia Department of Revenue website. State Electronic and Magnetic Media W-2 Reporting Deadlines UW-2, nder federal law, employers that file 250 or more Forms Wage and Tax Statement (Copy A), must file them electronically by January 31 after the year to which the form applies. The Social Security Administration does not accept Form W-2 data reported on magnetic media. Most states also require Forms W-2 to be filed electronically or on magnetic media by January 31 (36 states, District of Columbia, and Puerto Rico), or in February (three states). The due dates for filing 2020 Forms W-2 in 2021 are listed in the chart below. Forms due January 31 are due February 1, 2021, because January 31 is a Sunday. Forms due on February 15 are due on February 16, 2021, because February 15 is a federal holiday. Forms due by the last day of February are due on March 1, 2021, because February 28 is a Sunday. The remaining 11 states either do not require Forms W-2 to be sent to them (California and New York) or do not have a state income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming). The chart below provides information on states that require employers to file 2020 Forms W-2 electronically or on magnetic media and applicable due dates for filing (this updates The Payroll Source®, §8.14). Check your state tax department’s website for Form W-2 reporting guides, specifications, and instructions. State Electronic/Magnetic Media Filing Required Due Date AL Yes, if at least 25 W-2s (electronic filing only). 2-1-21 January 25, 2021 Volume 23 Issue 2
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