Wednesday, March 09, 2011
Earned Income Credit Notification Bill is Back
Legislation that would require Maryland employers to notify employees who may be eligible for the earned income credit will be heard by two key committees on Thursday, March 10.
The legislation, SB 473/HB 632, 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 qualifying factors, including:
- Adjusted gross income for the family.
- The employee’s income tax filing status.
- The number of the employee’s “qualified” children.
“Employers know none of those factors and could not reasonably estimate which of their employees may be eligible for the credit,” Maryland Chamber Vice President of Government Affairs Ron Wineholt said. “Eligibility for the credit also varies by county, as the local income tax rate is a factor in the calculation, posing additional complexity for businesses whose employees live in multiple counties.”
Similar legislation was passed by the House of Delegates last year, but was defeated in the Senate Budget & Taxation Committee. For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
