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Colorado Mandates Annual Notice to Employees Regarding Available Income Tax Credits

19 Apr

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Update Applicable to:
All employers in the state of Colorado.

What happened and what are the details?
On March 31, 2023, Lieutenant Governor Dianne Primavera, acting on behalf of Governor Jared Polis, signed into law House Bill 23-1006 (HB 23-1006), which expanded the annual tax withholding notice requirements to include written notice of the availability of federal and state earned income tax credits (26 U.S.C. § 32 and Colo. Rev. Stat § 39-22-123.5) and child tax credits (26 U.S.C. § 24 and Colo. Rev. Stat. § 39-22-129).

Employers may send the written notice to employees electronically, including via email or text message. The written notice must be in English and any other language the employer uses to communicate with employees and must include any additional content that the Colorado Department of Revenue may prescribe via rulemaking.

For more information, please see the links below:

House Bill 23-1006 (HB 23-1006)

Article

What do employers need to do?
Employers should review the links provided above and should begin providing notice to their employees electronically in the appropriate language of the employee.

Need help understanding how changes to employment laws will affect your business?

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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