The Commonwealth of Virginia has released a new Earned Income Tax Credit (EITC) posting. This mandatory posting, which is provided by the Virginia Department of Social Services (DSS), informs employees of the potential availability of the federal EITC.
EITC is a refundable tax credit that primarily benefits low- and middle-income working families, although single parents and some low-income individuals without children may also qualify. It is designed to incentivize work by increasing with income level and gradually decreasing as income rises above qualifying levels, which reduces economic shock. Although these tax credits can have a huge impact on the finances of working families, sometimes raising them out of poverty, research by the Internal Revenue Service (IRS) and the Government Accountability Office indicates that between 15 and 25 percent of households entitled to the EITC do not claim their credits.
As of July 1, 2009, the Code of Virginia (§ 40.1-28.7:3) requires every employer to post any notice provided by the DSS that informs employees of their potential eligibility for federal and state earned income tax credits. Previously the DSS provided IRS Publication 4194, “Life’s a Little Easier with EITC,” which conveyed general information about the federal EITC such as common filing errors to avoid and required documentation for tax return preparation.
Most recently, the DSS has provided employers with IRS Publication 4718, “Important Message from the IRS,” which displays more specific income-related information. For the 2016 tax year, employees who earn less than $53,505 and have a qualifying child, as well as employees who earn less than $20,430 and have no qualifying children, may be eligible for the federal EITC.
If you already own one of Compliance Poster Company’s signature products, you can update your EIC posting with this cost-effective Virginia 2017 Earned Income Credit Peel ‘N Post™ sticker in English or Spanish. Or, if you’re looking for a complete compliance solution, order an up-to-date Virginia All-On-One™ Poster, consolidating all state and federal required postings onto one convenient and attractive wall poster, or a Mobile Poster Pak™ booklet for mobile and off-site workers. And don’t forget to follow us on Facebook and Twitter, or subscribe directly to this blog, to keep up with compliance and labor law news!
Note: The Virginia 2017 Earned Income Credit Peel ‘N Post for the All-On-One comes appended to the Credit for Low-Income Individuals (CLI) posting, which informs employees about the state earned income tax credit. This year, the DSS has not provided a new CLI posting, but the information on the old version is still correct.