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SBAM Against Bill to Require Employer Notification for EITC Eligibility

December 12, 2009

In Lansing, the House Labor Committee took up a bill that would require employers to notify their employees about eligibility requirements for the Earned Income Tax Credit (EITC).  SBAM was on hand to oppose the bill.

The EITC is an income tax credit for low-income individuals.  The credit has been available on the federal level since the Reagan administration, and was recently made available at the state level.

The bill would require employers with five or more employees to provide each employee with information about the EITC prior to January 31 of each year.

The bill states that the information could be provided in one or more of the following ways:

·    Inclusion with the employee’s annual wage summary or with the federal W-2 or 1099 form.
·    By e-mail to the employee’s work e-mail address.
·    By mailing it to the employee at the employee’s last known home or mailing address.

The Department of Treasury would be required to make the information available to employers.

SBAM believes that this is just another unnecessary mandate passed on to business owners.  While one could argue that the cost of the mandate is minimal, we believe that the state shouldn’t force businesses to provide a service that is properly the role of government.

A voluntary program would be much more appropriate.

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