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Does the Advance Earned Income Tax Credit cost employers anything?

April 26, 2017COST credit earned employers

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Does the Advance Earned Income Tax Credit cost employers anything?

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Although employers are required to participate if employees file W-5 forms with them for the AEITC, employers do not pay for the AEITC. They simply subtract the advance payments they have added to their workers’ paychecks from the total taxes withheld from all employees that would normally be deposited with the IRS. The advance payments are easily programmed into automated payroll systems.