Advanced Earned Income Credit (EIC)
Advance payments of earned income credits are not automatically calculated. You can, with some math, compute these payments and incorporate them into your check preparation process:
Determine if employee is eligible for advance payment of earned income credit.
Obtain Form W-5 (Earned Income Credit Advance Payment Certificate) from employee. If either line 1 or line 2 is marked "no", the employee is not eligible for an advance payment. If both line 1 and line 2 are marked "yes", employee is eligible for an advance payment. Line three determines which married table you will use, if applicable.
Select Rate Table a, b or c
If line 3 of Form W-5 is marked "no," use Rate Table b. If line 3 is marked "yes", use Rate Table C.
See EIC Advance Payment Table for actual table for annual payroll period.
