NYS Comptroller Seal


Bureau of State Payroll Services


  Date: November 5, 2003   Bulletin No. 438

Subject Advance Payment of Earned Income Credit
Purpose To explain the procedure for the annual review of employees with Earned Income Credit (EIC).
Affected Employees Employees eligible to receive advance Earned Income Credit payments for 2004.
Background Internal Revenue Regulations require employees eligible for advance payment of Earned Income Credit to file a new W-5 "Earned Income Credit Advance" certificate each year.

The federal government provides either a credit or an income tax refund to employees who earn low or modest wages, if they meet eligibility requirements relating to their annual income and family size. Eligible employees have the option of receiving advance payments of earned income credit directly from their employer in the form of regular EIC payments added to their paychecks.
Agency Actions Control-D Report TAX113 identifies employees in your agency who currently claim Earned Income Credit. The employees appearing on this report, available in Control-D on November 17, must have their federal tax records changed if a new Form W-5 is not filed.

If you have not received a new W-5 by December 31, 2003 for an employee on this report, the EIC must be canceled on the Employee Tax Data page and made effective for the first payroll check in 2004. For Institution Agencies, the effective date should be the paychecks dated January 9, 2004. For Administration Agencies, the effective date should be the paychecks dated January 14, 2004.
Questions Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.