Year-End Notification Requirements

The following is an overview of the year-end notification requirements you must complete.

You must provide employees with a federal Wage and Tax Statement (Form W-2) by January 31 (or next business day if it is a weekend or holiday). If you do not provide a Form W-2 to each employee, or you give false or fraudulent statements, you will be fined.

Tax Code

For More Information

You can find IRS Form W-2 reporting requirements and instructions:

For help with state information on Form W-2, refer to the California Employer’s Guide (DE 44) (PDF) or contact us at 1-888-745-3886. If the employee performs services in more than one state, contact the other state for guidance.

Employee Notification Is Required

All employers are required to notify their employees of the federal Earned Income Tax Credit (EITC). Employers must give notification within one week of providing employees with an annual wage summary (IRS Form W-2 or 1099).

You must give notification by either handing it directly to your employee or mailing it to your employee’s last known address. Posting on an employee bulletin board will not satisfy the notification requirement.

The notification must include instructions on how to get any notices available from the IRS for the credit, including the IRS Notice 797 (PDF). You can create the notification, as long as it has the same or very similar language as the IRS notice.

Refer to EITC Information for Employers for more information.

EITC Awareness Day

January 28 is Earned Income Tax Credit Awareness Day. EITC Awareness Day is a national grassroots effort focusing on this valuable federal tax credit. Joining the IRS in this effort are charitable organizations, elected officials, state and local governments, employers, and local communities nationwide.

We encourage California taxpayers to learn more about Earned Income Tax Credit to know if they are eligible for this refundable credit on their federal tax return. Free tax preparation sites are available to help you file and claim the credit.

California Earned Income Tax Credit

The state offers its own California Earned Income Tax Credit (CalEITC). This credit is offered in addition to the existing federal EITC. Find out who qualifies for the California EITC and how to claim the California Earned Income Tax Credit (CalEITC).

Individuals, partnerships, corporations, or other organizations involved in a trade or business in California may be required to report independent contractor payments.

Avoid Penalties

If required, you must provide an information return (Form 1099) to an independent contractor by January 31 (or the next business day if it is a weekend or holiday), or you will have to pay a penalty.

Tax Code

For More Information

You can find IRS Form 1099 reporting requirements and instructions:

e-Services for Business

Use e-Services for Business to manage your employer payroll tax account online.

Contact Us

If you have questions, Contact Payroll Taxes. You can also contact the Taxpayer Assistance Center at 1-888-745-3886 or visit your local Employment Tax Office.