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Bill

A 4959

Provides for advance payment of the earned income credit by employers

2025 Regular Session Introduced by Chris Burdick and 1 co-sponsor

Bill A 4959 allows employers to provide advance payments of the Earned Income Tax Credit, boosting cash flow for low- to moderate-income workers year-round.

REFERRED TO WAYS AND MEANS
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WeVote Research Nonpartisan
Bill Summary · A 4959

Summary of Bill A 4959

Bill Information

  • Bill Number: A 4959
  • Title: Provides for advance payment of the earned income credit by employers
  • Status: Referred to Ways and Means
  • Introduced: February 10, 2025
  • Classification: Bill

Purpose and Intent

Bill A 4959 aims to facilitate the financial well-being of low- to moderate-income workers by allowing employers to provide advance payments of the Earned Income Tax Credit (EITC). This initiative is designed to improve cash flow for eligible employees, enabling them to meet their immediate financial needs rather than waiting until tax season to receive their credits.

Key Provisions

  • Advance Payments: The bill permits employers to pay a portion of the EITC directly to employees as an advance, rather than waiting for the annual tax filing.
  • Eligibility Criteria: The bill outlines specific eligibility requirements for employees to qualify for advance payments, ensuring that only those who meet the income thresholds for the EITC can benefit.
  • Employer Responsibilities: Employers who choose to offer advance payments will have to implement a system for calculating and distributing these payments accurately.
  • Tax Implications: The advance payments will be treated as a prepayment of the EITC, which means they will reduce the amount employees receive when they file their taxes.

Who Would Be Affected

  • Employees: Low- to moderate-income workers who qualify for the EITC will benefit from increased cash flow throughout the year.
  • Employers: Businesses that opt to participate in this program will need to adjust their payroll systems to accommodate advance payments.
  • Tax Authorities: The bill may require adjustments in how tax credits are administered and reported by both employers and employees.

Procedural Aspects

  • The bill was introduced on February 10, 2025, and has been referred to the Ways and Means committee for further consideration.
  • The legislative process will involve discussions and potential amendments before any final vote can occur.

Related Bills

This bill is part of a broader legislative context, with several related bills from prior sessions:
- S 6259
- A 8066
- A 6112
- A 3532
- S 5165 (companion bill)

These related bills may provide additional context or alternative approaches to similar issues regarding the EITC and financial support for low-income workers.

Conclusion

Bill A 4959 represents a significant step towards enhancing the financial stability of eligible workers by allowing for advance payments of the Earned Income Tax Credit. By streamlining access to these funds, the bill seeks to alleviate financial burdens and promote economic security for low- to moderate-income families.

Compiled from official sources — confirm details with the bill’s official record.

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