Colorado Mandates Annual Notice to Employees Regarding Available Income Tax Credits

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.