Wednesday, March 03, 2010
Bill Would Require Employer Notification of Earned Income Credit
Maryland Chamber Vice President of Government Affairs Ron Wineholt last week urged the House Ways & Means Committee to oppose legislation that would require Maryland employers to annually notify employees who may be eligible for the earned income credit.
The bill, HB 755, would require the Comptroller to annually publish the maximum income eligibility for the state’s earned income credit and a notice to employees regarding the federal and state credits. Employers would be required to identify employees who may be eligible for the credit and provide them with a copy of the comptroller’s notice.
The Maryland Chamber opposes the bill because it is the responsibility of the state, not employers, to identify individuals potentially eligible for the earned income credit.
In order for an employer to know if an employee may be eligible for the credit, the employer would need to know information about information about qualifying factors, including:
- Adjusted gross income for the family.
- The employee’s income tax filing status.
- The number of the employee’s “qualified” children.
“An employer attempting to comply with this bill would have to make a choice,” Wineholt said. “Do they provide copies of the notice to every employee in the company, or do they identify and notify only those employees below certain wage levels who may qualify for the credit? Either option is a bad choice for the employer due to the time, costs and privacy issues involved.”
For more information, access the Chamber’s complete position statement here (pdf) or contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
