A “First of its Kind” PFML Plan launches in New Hampshire
Beginning in December 2022, employers can start enrolling in New Hampshire's new voluntary Paid Family and Medical Leave plan for employers and employees of all types of businesses.
The Earned Income Tax Credit (EITC) is a tax credit provided to help offset the basic living expenses (including FICA taxes) of low income employees.
For an employee to qualify for the EITC, earned income and adjusted gross income must be less than a certain amount, depending on his or her filing status and amount of qualifying children. Here are the thresholds for single filing and married filing employees:
A number of relationships fall under 'qualifying children':
There are also certain stipulations that must be met for these children. They include:
The EITC may be claimed as a direct offset to an employee's income tax liability by filing Schedule EIC and listing the children on either Form 1040A or 1040.
Employers must notify employees whose wages are not subject to federal income tax withholding (unless they are exempt because they did not incur any liability for the previous year and expect to incur no liability for the current year) that they may be eligible for a refund as a result of the EITC. Employers might also want to notify employees making less than the qualifying amounts that they might be eligible.