HI HB1727

Requires employers to notify all employees of potential eligibility for the federal earned income tax credit (EITC) as defined in Internal Revenue Code section 32, within one week before or after providing annual wage statements.

Employers must provide notification by direct delivery or mail to the employee's last known address, not by bulletin board posting or office mail, though these methods are encouraged as supplementary notification.

Employers may satisfy the requirement by providing either instructions on obtaining IRS Notice 797 or a successor notice, or by creating their own notice containing substantially similar language.

The required notice must include specified language informing employees that EITC is a refundable federal credit for low-income working individuals and families, does not affect certain welfare benefits, and that employees must file a tax return to receive it.

Takes effect July 1, 2091, and applies to taxable years beginning after December 31, 2015.