Year end changes for 2011 - EIC

EIC, W-4 and Other Tax Status Changes
December 16, 2010
Dear Jonathan,

Please review the following information below.

NOTE:  Earned Income Credit (EIC) is scheduled to expire for good at the end of 2010.

Legislation signed August 10, 2010 repeals the Advanced Earned Income Tax Credit. Recipients will not be able to claim Advance EITC after December 31, 2010.

 

http://www.irs.gov/individuals/article/0,,id=215766,00.html

 

Please review your year end records and note any employee with a current year EIC (Earned Income Credit) setup.  They should be turned off with the first payroll of 2011.  

 

  • NOTE: BeyondPay will attempt to find any employees with EIC setup and remove these settings.  However, it is important that you check as we can not guarantee they will all be found.
  • Please notify BeyondPay of any employees setup for EIC.
  • Also, please review any employees who are currently setup with a tax-exempt status for Federal and/or State, etc and be sure this is correct.

It is always a good idea to have your employees complete a new W-4 Form for 2011. You can find these by searching for "fw4" with Google, or from our website.

 

IMPORTANT: If there are any changes, they cannot be made until the first payroll of 2011. These changes are NOT automatic. You need to delete EIC and make changes to the employee's tax status.  BeyondPay can help make any of these changes



The BeyondPay Team
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