Bill Text: HI HB1727 | 2016 | Regular Session | Amended
Bill Title: Income Tax; Federal Earned Income Tax Credit; Notice of Eligibility
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-02-18 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Luke, Nakashima, Souki excused (3). [HB1727 Detail]
Download: Hawaii-2016-HB1727-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1727 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 235-63, Hawaii Revised Statutes, is amended to read as follows:
"§235-63 Statements to employees[.];
earned income tax credit information. (a) Every employer
required to deduct and withhold any tax on the wages of any employee shall
furnish to each employee in respect of the employee's employment during the
calendar year, on or before January 31 of the succeeding year, or if the
employee's employment is terminated before the close of a calendar year, within
thirty days after the date of receipt of a written request from the employee if
[such] the thirty-day period ends before January 31, a written
statement[,] showing the period covered by the statement, the wages paid
by the employer to the employee during [such] the period, and the
amount of the tax deducted and withheld or paid in respect of [such] the
wages. Each [such] employer shall file on or before the last day of
February following the close of the calendar year a duplicate copy of each [such]
statement. The department of taxation may grant to any employer a reasonable
extension of time, not in excess of sixty days, with respect to any statement
required by this section to be furnished to an employee or filed, and may by
regulation provide for the furnishing or filing of statements at [such]
other times and containing [such] other information as may be required
for the administration of this chapter. The department shall prescribe the
form of the statement required by this section and may adopt any federal form
appropriate for the purpose.
(b) Every employer required to deduct and withhold any tax on the wages of any employee shall notify all employees that they may be eligible for the federal earned income tax credit, as defined in section 32 of the Internal Revenue Code, within one week before or after, or at the same time, that the employer provides a statement to an employee pursuant to subsection (a).
The employer shall provide the notification by handing directly to the employee or mailing to the employee's last known address either of the following:
(1) Instructions on how to obtain any notices available from the Internal Revenue Service for this purpose, including Internal Revenue Service Notice 797 (possible federal tax refund due to the earned income credit) or any successor notice; or
(2) Any notice created by the employer; provided that it contains substantially the same language as the notice described in paragraph (1) or in subsection (c).
The employer shall not satisfy the notification requirement by posting a notice on an employee bulletin board or sending it through office mail. However, these methods of notification are encouraged to help inform all employees of the federal earned income tax credit.
(c) The notice furnished to employees regarding the availability of the federal earned income tax credit shall state as follows:
"Based on your annual earnings, you may be eligible to receive the earned income tax credit from the federal government. The earned income tax credit is a refundable federal income tax credit for low-income working individuals and families. The earned income tax credit has no effect on certain welfare benefits. In most cases, earned income tax credit payments will not be used to determine eligibility for Medicaid, supplemental security income, food stamps, low-income housing, or most temporary assistance for needy families payments. Even if you do not owe federal taxes, you must file a tax return to receive the earned income tax credit. Be sure to fill out the earned income tax credit form in the federal income tax return booklet. For information regarding your eligibility to receive the earned income tax credit, including information on how to obtain the IRS Notice 797 or any other necessary forms and instructions, contact the Internal Revenue Service at 1-800-829-3676 or through its website at www.irs.gov.""
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2091, and apply to taxable years beginning after December 31, 2015.
Report Title:
Income Tax; Federal Earned Income Tax Credit; Notice of Eligibility
Description:
Requires employers to notify employees, when providing their annual wage summary statements, that they may be eligible to receive the federal earned income tax credit. (HB1727 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
