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.
For tax years beginning January 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.
To assist in satisfying the requirement, the Colorado Department of Revenue has published a model notice.
Review and Download the Model Notice
Find additional details on the legislation here.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.