|Date: November 5, 2003||Bulletin No. 438|
|Subject||Advance Payment of Earned Income Credit|
|Purpose||To explain the procedure for the annual review of employees with Earned Income Credit (EIC).|
|Affected Employees||Employees eligible to receive advance Earned Income Credit payments for 2004.|
Internal Revenue Regulations require
employees eligible for advance payment of Earned Income Credit to file a new
W-5 "Earned Income Credit Advance" certificate each year.
The federal government provides either a credit or an income tax refund to employees who earn low or modest wages, if they meet eligibility requirements relating to their annual income and family size. Eligible employees have the option of receiving advance payments of earned income credit directly from their employer in the form of regular EIC payments added to their paychecks.
Control-D Report TAX113 identifies
employees in your agency who currently claim Earned Income Credit. The employees
appearing on this report, available in Control-D on November 17, must
have their federal tax records changed if a new Form W-5 is not filed.
If you have not received a new W-5 by December 31, 2003 for an employee on this report, the EIC must be canceled on the Employee Tax Data page and made effective for the first payroll check in 2004. For Institution Agencies, the effective date should be the paychecks dated January 9, 2004. For Administration Agencies, the effective date should be the paychecks dated January 14, 2004.
|Questions||Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.|