The state of Colorado enacted legislation (House Bill 23-1006) requiring employers to provide an annual notice to employees regarding certain tax credits that may be available.
For tax years beginning January 1, 2023, and after, an eligible employer must provide all employees a written notice about the federal and state earned income tax credits and the federal and state child tax credits available to them.
The notice is required to be provided at least once each year. An employer can send the written notice to employees electronically, including via text message or email. It must be in English and any other language(s) used by the employer to communicate with employees. The notice must also include additional content required by the Department of Revenue via regulations.
The Colorado Department of Revenue has published a model notice to assist in satisfying the requirement.
Review and Download the Model Notice
Find additional details on the legislation here.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
