Year-End Notification Requirements

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

• California Unemployment Insurance Code – section 13050 
• California Unemployment Insurance Code – section 13052 
• California Unemployment Insurance Code – section 13052.5 
• Revenue and Taxation Code – section 17041 

For More Information

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

• Employer’s Tax Guide (Publication 15, Circular E)
• Instructions for Forms W-2 and W-3 (PDF)
• Forms, Instructions and Publications - IRS website.

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

• California Unemployment Insurance Code – section 13052.5
• Revenue and Taxation Code – section 19175
• Revenue and Taxation Code – section 17041 

For More Information

You can find IRS Form 1099 reporting requirements and instructions:

• Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3922, 5498, and W-2G (IRS Publication 1220) (PDF) – Form 1099 reporting requirements and instructions.
• General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S (IRS Publication 1179) (PDF) – Rules for substitute statements if you don’t use a Form 1099.
• Forms, Instructions and Publications - IRS website.