NY S04016

Requires employers to make advance payments of the earned income credit to employees who submit an earned income eligibility certificate, with payments made at the time of wage payment based on tables prescribed by the commissioner.

Employees must certify eligibility for the earned income credit, possession of one or more qualifying children, absence of another certificate with a different employer, and spousal certificate status to receive advance payments.

Advance payment amounts are calculated based on employee wages using tables similar to federal withholding tables under Internal Revenue Code section 3402, with reduced amounts if the employee is unmarried or spouse lacks a certificate.

Employers may elect to pay advance amounts in full and treat excess payments as advance tax payments; failure to make required advance payments is treated as a withholding violation subject to penalties.

Includes a safe harbor provision protecting individuals from recapture of excess advance payments if they properly claimed payments in the prior year with no substantial change in circumstances, effective for taxable years beginning January 1, 2020.