Employers Must Notify Employees About the Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is a federal and state tax credit for certain employees making up to $57,414 in 2021. As employers prepare to send out Form W-2s, the Oregon Bureau of Labor and Industries (BOLI) recently issued a notice reminding Oregon employers they are required to notify their employees that they may be eligible for this tax credit.

At a minimum, employers should provide employees written notice about the EITC along with the employee’s Form W-2 each year. This notice can be sent by regular or electronic mail, hand-delivery, or in any electronic manner used to provide the employee’s federal Form W-2, and must include information on the EITC website from the Oregon Department of Revenue and the IRS.

To help employers meet these notice requirements, BOLI provides sample text that employers can use. The sample text as well as more information on the EITC can be found on BOLI’s EITC page.