An Update to the Earned Income Tax Credit (EITC) in Louisiana

You’ve posted all the required federal and state labor law posters in your business—but are they up to date? If you’re in Louisiana, you may already be out of compliance. That’s because there are new provisions of the earned income tax credit (EITC) that your state labor law posters need to explain.

Changes to the Earned Income Tax Credit (EITC) in Louisiana

The Louisiana Earned Income Tax Credit (EITC) provides a tax credit for employees who earn less than a threshold amount and who meet other conditions. While an employee doesn’t need to have children to qualify for the EITC, the income thresholds are substantially higher for employees who have children.

New for 2021, the threshold for EITC eligibility has been adjusted. Now the EITC is available to employees who earn no more than the income thresholds set forth in the following table:

To maintain compliance, employers in Louisiana must advise employees at the time of hiring if their wages are expected to fall below the EITC threshold. They must also post a labor law notice explaining what income levels are eligible for the EITC.

A new law from March 2021, the 2021 American Rescue Plan Act, might also have an effect on EITC eligibility. Businesses should ensure that their labor law posters provide a website and contact information for the Internal Revenue Service (IRS), so that interested employees can obtain more information.

Keep Your Louisiana Business’s Labor Law Posters Current

Do you have up-to-the-moment labor law posters for your Louisiana business? Visit the Louisiana page on our website to order new labor law posters that will always reflect the current law. When you sign up for an annual subscription to our compliance plan, you’ll automatically receive free poster updates for any mandatory law changes throughout the year. Visit Poster Compliance Center today—and never worry about your labor law posters again.