Do you have employees or independent contractors who live in Philadelphia? If so, the City of Philadelphia is requiring you to include an additional notice with their W-2, 1099 or “comparable form.” It is all part of the City’s “Income Inequality Initiative,” which seeks to increase the number of residents that take advantage of the federal government’s Earned Income Tax Credit (EITC). The Notice, which can be found here, explains who may be entitled to EITC and where residents can obtain free help preparing their tax returns.
Importantly, the requirement applies to companies NOT located in Philadelphia as well as those located in the City. It also applies regardless of whether the workers are employees or “non-payroll workers” (i.e. contractors). The Notice must be sent at the same time as the worker’s W-2 or 1099. If the Notice is not sent with the W-2 or 1099, companies must send it no later than February 7, 2015. Failure to do so may expose companies to penalties under the City’s revenue code.
More information about the “Income Inequality Initiative” and notice requirements may be found here. For help complying with this and other laws relating to employees and contractors, contact us–we are here to help!
Julie Kinkopf, Esquire is principal of Kinkopf Law LLC and has been counseling businesses of all sizes on employment and general business matters for over 15 years. Ms. Kinkopf is former General Counsel of a medical imaging company and has extensive experience representing businesses in state and federal court cases involving employment matters, contracts and commercial disputes. She also helps businesses develop sound employment practices designed to avoid litigation and government audits. Ms. Kinkopf represents employers before various governmental agencies as well as in state and federal courts in post-employment litigation, including discrimination, retaliation, pay disputes and non-compete/trade secret matters. More information may be found at www.kinkopflawfirm.com.
Disclaimer: The contents of this post are for informational purposes only, are not legal advise and do not create and attorney-client relationship.