Purpose

To explain the procedure for the annual review of employees with Earned Income Credit (EIC).

Affected Employees

Employees with Earned Income Credit

Background

Internal Revenue Service Regulations require employees eligible for advance payment of Earned Income Credit to file a new W-5 "Earned Income Credit Advance" certificate each year.

Agency Actions

Report (TAX113) identifying employees in your agency currently claiming Earned Income Credit is available in Reveal. This report identifies employees that must have their federal tax records changed if a new W-5 is not filed.

If you have not received a new W-5 for an employee on this report, the EIC must be canceled on the Employee Tax Data panel effective with the first payroll check of 2001.

Questions

Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.