What Employers Need to Know

Employers in Virginia should be aware that the Virginia Department of Social Services (VDSS) recently issued two new notices that must be posted in the workplace. Both notices include information on how employees may be able to boost their income with tax credits.

The first is a brand-new notice that provides information on the Virginia Credit for Low Income Individuals (CLI). The second notice has been totally revamped and outlines new information about the Federal Earned Income Tax Credit (EITC) for tax year 2017.

What Employees Need to Know

Virginia Credit for Low Income Individuals

Some employees may not realize that the Commonwealth of Virginia provides an income tax credit for low income, working individuals and families.

As outlined on the new CLI notice, workers in Virginia can visit the Low Income Individuals Credit page on the Virginia Tax website (www.tax.virginia.gov/low-income-individuals-credit) to find out if they qualify.

Alternately, employees can call the Virginia Department of Taxation at either of two telephone numbers provided on the notice to see if they qualify for the tax credit, or they may go to the department’s website (www.tax.virginia.gov).

Federal Earned Income Tax Credit

The updated Federal Earned Income Tax Credit notice provides all-new information about eligibility for the program for tax year 2017, as well as contact information for help with the filing process.

Among other requirements, the EITC is for workers who:

  • Earn less than $53,930
  • Have a valid Social Security number
  • Have investment income of no more than $3,450
  • Are generally U.S. citizens or resident aliens for the entire tax year

When filing for the EITC, workers are encouraged to double-check their facts. The notice lists some common errors that should be avoided. For example: claiming a child who does not meet the relationship, age, or residency requirements for a qualifying child; overreporting or underreporting income or expenses.

Any errors in an Earned Income Tax Credit claim that is audited by the IRS may result in penalties or an individual being banned from claiming the tax credit for a certain number of years.

Those who need help with the EITC can go online (www.irs.gov/eitc), call a toll-free number, or visit a Volunteer Income Tax Assistance site for no-cost tax help and tax preparation. Additional assistance tools include information on free online filing software, finding a qualified tax preparer, and a TTY/TDD phone number for those who are hearing impaired.

How to Keep Those Posters Coming!

Based on these up-to-the-minute changes, it’s time for our Virginia customers to order the new state poster.

If you have not already done so, order our OneSystem 1-Year Compliance Plan so that you will automatically receive the updated Virginia poster as soon as it is available. And because we provide free updates for mandatory changes, no matter how many occur during the year, you can count on us to keep you in compliance!