What is the Texas EITC notice requirement for employers?
An annual notice, owed by any employer with one employee, due no later than 1 March. Most Texas employers have never heard of it.
Last updated: August 02, 2026
Direct Answer
Texas law requires employers to inform their employees about the federal Earned Income Tax Credit no later than March 1 of each year. The notice tells employees that they may be eligible for the credit and how to get information about claiming it. Employers can satisfy the requirement with a short written or electronic notice, and the Texas Workforce Commission publishes materials employers can use.
Controlling authority: TWC EITC notification guidance, TWC workplace posters and DOL poster requirements.
Who owes it, and by when
The obligation is annual and light: by each March 1, tell your employees the Earned Income Tax Credit exists and where to learn whether they qualify. Delivery can ride along with W-2 distribution, payroll stuffers, email, or the company intranet. Many payroll providers include an EITC insert automatically, and it is worth confirming rather than assuming yours does.
The credit itself is meaningful money for lower and moderate income working households, which is exactly the workforce of many Texas small businesses, nonprofits, and municipalities. Beyond compliance, the notice is a free goodwill gesture: employers are telling eligible employees about cash the federal government already owes them.
A Texas requirement with a date on it that most employers have never heard of: under TWC guidance, Texas employers must notify employees of the federal Earned Income Tax Credit no later than 1 March each year. It applies to any employer with one or more employees, and IRS Notice 797 or a written statement in the same wording satisfies it. It is an affirmative annual notification rather than a poster, which is precisely why it is missed.
| Requirement | What it is | Timing |
|---|---|---|
| Earned Income Tax Credit notice | Texas employers must notify employees of the federal EITC; IRS Notice 797 or a written statement in the same wording satisfies it | No later than 1 March each year. This is an affirmative notification with a deadline, not just a poster — and it applies to any employer with one or more employees. |
| Texas Payday Law poster | TWC-issued | Posted continuously |
| Texas Unemployment Compensation Act poster | TWC-issued | Posted continuously |
| Equal employment opportunity poster | TWC and EEOC | Posted continuously |
| Federal posters | FLSA, FMLA (covered employers), OSHA, EPPA, USERRA, Know Your Rights | Posted continuously, where employees can see them |
| Remote employees | Electronic delivery is generally acceptable where posting alone would not reach them | A poster on a wall nobody visits satisfies nothing. |
It is a notification, not a poster
The March 1 date slips because it belongs to no one. January has W-2s, and by the time those ship, the EITC notice is forgotten. The fix is administrative: attach the notice to the W-2 process itself so both go out together, and note it on the compliance calendar.
Texas otherwise imposes no pay transparency mandates on private employers: no salary ranges in job postings and no disclosure requirements beyond this notice. Employers hiring in other states may face those states' rules, and this library's compensation pages cover how to handle pay questions defensibly regardless of mandates.
| Subject | Texas position | What that means in practice |
|---|---|---|
| Employment at will | The default rule, limited only by statute, contract, and one narrow common-law exception | Sabine Pilot is the only judicially created exception. |
| Right to work | Employment may not be conditioned on union membership or non-membership (ch. 101) | Not the same thing as at-will. The two are constantly confused, including in HR policies. |
| Minimum wage | Adopts the federal rate; no state increase | The exposure is in deductions and unpaid time. |
| Overtime | No state overtime law and no daily overtime | Federal FLSA does all the work. |
| Paid sick leave | No state or local mandate | Local ordinances were struck down or preempted. Obligations come from your own policy. |
| Family leave | No state family leave statute | FMLA, ADA and PWFA are the whole framework. |
| Final pay | Six calendar days on discharge, next payday on resignation | One of the few areas where Texas is more specific than federal law. |
| Non-compete | Enforceable within statutory limits (sec. 15.50) | Texas is comparatively permissive, but the limits are real. |
| Workers’ compensation | Optional for private employers | The only state where that is true. |
Where the EITC notice is missed
The EITC notice is a small obligation that signals whether annual compliance rhythms exist at all. Watch for these.
- No one assigned to send the notice by March 1
- Assumption that the payroll provider handles it, never verified
- New hires after March 1 never receiving the information
- No record kept of what was sent and when
- The notice treated as the whole of pay communication, with no policy behind it
Diarise it with your other annual obligations
Confirm whether last year's notice actually went out and who sent it. If the answer is unclear, assign the task, template the notice, and calendar it against the W-2 cycle permanently.
Keep a dated copy of each year's distribution. Compliance you cannot prove is compliance you do not have.
Shows which Texas obligations apply to you, and what changed this session.
When notice obligations are unclear
Get help if this page is the first you have heard of the requirement, because the same review that fixes the EITC notice usually surfaces other missed annual items: posters, handbook acknowledgments, and required filings.
An annual compliance calendar, built once for your specific profile, converts these scattered obligations into a routine.
Get a Straight Answer for Your Situation
General rules only go so far. If this question is live in your organization right now, talk it through with a senior HR consultant before you act. One conversation now costs less than one claim later.
Contact UsThis page provides general HR information for employers and is not legal advice. For legal interpretation or representation, consult qualified employment counsel.