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Bill

S 5165

Provides for advance payment of the earned income credit by employers

2025 Regular Session Introduced by Leroy Comrie

Bill S 5165 allows employers to provide advance Earned Income Tax Credit payments to eligible low- to moderate-income workers, boosting their financial stability year-round.

REFERRED TO BUDGET AND REVENUE
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WeVote Research Nonpartisan
Bill Summary · S 5165

Summary of Bill S 5165

Bill Overview

  • Bill Number: S 5165
  • Title: Provides for advance payment of the earned income credit by employers
  • Status: Referred to Budget and Revenue
  • Introduced On: February 19, 2025
  • Classification: Bill

Purpose and Intent

The primary purpose of Bill S 5165 is to enable employers to provide advance payments of the Earned Income Tax Credit (EITC) to eligible employees. This initiative aims to improve financial stability for low- to moderate-income workers by allowing them to receive part of their tax credits throughout the year rather than waiting until tax season.

Key Provisions

  • Advance Payment Mechanism: The bill proposes a system where employers can distribute EITC payments directly to employees as part of their regular paychecks.
  • Eligibility Criteria: The bill outlines specific eligibility requirements for employees to qualify for advance payments, ensuring that only those who meet the income thresholds can benefit.
  • Administrative Guidelines: It includes provisions for how employers can administer these advance payments, including reporting requirements and the process for reconciling payments at the end of the tax year.

Impact

  • Employees: The bill is expected to benefit low- to moderate-income workers who qualify for the EITC, providing them with immediate financial relief and reducing reliance on credit during the year.
  • Employers: Businesses will need to adapt their payroll systems to accommodate the advance payment of EITC, which may involve additional administrative responsibilities.
  • Economic Implications: By increasing the disposable income of eligible workers, the bill aims to stimulate local economies and enhance consumer spending.

Procedural Aspects

  • Current Status: As of February 19, 2025, the bill has been referred to the Budget and Revenue committee for further consideration.
  • Related Legislation: This bill is related to several prior-session bills (S 6259, A 8066, A 6112, S 9066) and has a companion bill (A 4959) that may address similar issues.

Conclusion

Bill S 5165 represents a significant step towards providing financial support to eligible workers through the advance payment of the Earned Income Tax Credit. By facilitating access to these funds throughout the year, the bill aims to enhance economic security for many families and individuals. Further discussions and evaluations will take place as the bill moves through the legislative process.

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

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