2015 Philadelphia Businesses Must Provide Tax Notice Of EITC Program To Employees and Non-Payroll Workers

2015 Philadelphia Notice Requirements for Businesses

If you are a business that has employees or independent contractors who live in Philadelphia, the City of Philadelphia imposes notice requirements.

Beginning January 1, 2015, Title 19, Chapter 19-4000, of the Philadelphia Code, entitled “Income Inequality Initiative – Earned Income Tax Credit,” requires all employers to provide notice of the federal Earned Income Tax Credit (“EITC”) program to all Philadelphia resident employees and non-payroll workers at the same time as their W-2, 1099, or comparable forms are provided.

This new law applies to not only companies in Philadelphia but to those entities not located in Philadelphia that employ or pay residents of the City of Philadelphia.

About the Earned Income Tax Credit:

The Earned Income Tax Credit (“EITC”) is a refundable credit available to low to moderate income individuals and families. Over 40,000 Philadelphia residents are not claiming EITC, which has an average benefit of $2,400 per return. The goal of this law change is to help help more of its citizens take advantage of this tax break and ultimately infusing an extra $100 million into the Philadelphia economy.

The City of Philadelphia Earned Income Tax Credit Notice Requirements:

Under Title 19, Chapter 19-4000 of the Philadelphia Code, an employer must do the following:

(A) The employer must give the employee or non-payroll worker the “2014 Earned Income Tax Credit (‘EITC’) Notice,” at the same time it provides a W-2, 1099, or comparable form

OR

(B) If a W-2, 1099, or comparable form was sent to the employee or non-payroll worker without the City of Philadelphia “2014 Earned Income Tax Credit (‘EITC’) Notice,” the employer must give the required form to the employee or non-payroll worker no later than February 7, 2015.

City of Philadelphia Notice Form:

The City of Philadelphia “2014 Earned Income Tax Credit (‘EITC’) Notice” form is available for download at http://www.phila.gov/revenue/EITC;

Penalty:

Notification after February 7, 2015 will be evidence of non-compliance of the “same time” requirement, subject to a penalty pursuant to § 19-509 of the Philadelphia Code.

Notification:

Notification can be provided electronically or in hard-copy.

For more information:

For Earned Income Tax Credit, go to http://www.eitc.irs.gov.

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