Although it’s not a new requirement, with tax season upon us California employers should be aware that under state law, they are are required to provide written notice to employees of their potential eligibility for both the federal and California Earned Income Tax Credit (EITC) within a week of providing a Form W-2 or a Form 1099 to any employee. (Cal. Rev. & Tax. Code, § 19853.)
Depending on the number of dependents, an employee earning anything below $22,302 for the 2017 calendar year could potentially be eligible for either the federal or California EITC and should be provided with the notice. The notice must be physically given to the employee or mailed to the employee’s last known address.
Thankfully, the statute also suggests what language to include in the notice, and you can download a PDF version of the notice: