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Update
The Colorado Department of Revenue has released a model notice to satisfy the notice requirement. Colorado employers should review the model notice instructions carefully and distribute the notice to employees accordingly.
Review the model notice and instructions here.
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Colorado has enacted legislation (House Bill 23-1006) that requires employers to provide an annual notice to employees about certain tax credits that may be available to them.
The details
For tax years beginning Jan. 1, 2023, and after, employers must provide all employees with a written notice of the availability of the federal and state earned income tax credits and the federal and state child tax credits. The notice must be provided at least once per year.
An employer may send the written notice to employees electronically, including via email or text message. The written notice must be in English and any other language the employer uses to communicate with employees and must include any additional content the Department of Revenue requires via regulations.
Next steps
- Adopt practices to ensure the new notice requirement is met.
- Watch for developments closely in case the Department of Revenue issues regulations, guidance and/or a sample notice.
Please contact your dedicated ADP® Service Representative with any questions.
Thank you,
ADP