On March 31, 2023, Colorado House Bill 1006 was signed into law requiring that employers notify employees of the availability of the federal and state earned income and state child tax credits.
The details:
Effective with the Jan. 1, 2023, tax year, the enacted legislation requires that employers provide a written notice at least once a year regarding the availability of the federal and state earned income and state child tax credits.
An employer may send the required notice electronically such as by email or text message. The written notice must be in English and any other language the employer uses to communicate with employees and must include any additional content that the Colorado Department of Revenue (DOR) prescribes.
Next steps:
· Employers should review Colorado House Bill 1006 and be on the lookout for additional information from the DOR. A written notice (hard copy or electronically) should be provided no later than the end of 2023 and thereafter annually.
· ADP TotalSource sends out Earned Income Tax Credit (EITC) notices to employees each year if they operate in locations that require the notices.
Have questions?
Please contact your ADP Service Representative with any questions.