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Year-End Notification Requirements

Employers are required to complete the following year-end notification requirements.

Don’t forget to provide each of your employees with their federal Wage and Tax Statement (Form W-2) by January 31 (or the next business day if that date falls on a weekend or holiday). It is important to meet this deadline to stay compliant and avoid any possible penalties. Providing timely W-2s helps ensure a smooth tax season for everyone.

For More Information

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

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

You can find more information on the relevant Tax Codes below:

Employee Notification Is Required

If you are required to provide Unemployment Insurance to your employees, you must give them an Earned Income Tax Credit (EITC) notification. You can either hand it directly to them, mail it to their last known address, or email it to them if an employee opts into receipt of electronic statements or materials. Posting it on an employee bulletin board does not meet the notification requirement. For more information, refer to Assembly Bill 1355.

The notification must be given within one week before, after, or at the same time you  provide an annual wage summary (such as Forms W-2 or 1099). The notice will include instructions on how to obtain any IRS notices on EITC, including, but not limited to, the IRS Notice 797, or any similar notice you create as long as it contains the same language as the notice below.

 “Based on your annual earnings, you may be eligible for the following assistance:

Voluntary Income Tax Assistance (VITA) Program – VITA is a free basic income tax return preparation program for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.

Federal Earned Income Tax Credit (federal EITC) – The federal EITC is a refundable credit for low-income working individuals and families. The federal EITC will not impact certain public assistance benefits. In addition, federal EITC payments are typically not used to determine eligibility for the following:

(A) Medicaid.

(B) Supplemental Security Income.

(C) Supplemental Nutrition Assistance Program.

(D) Low-income housing.

(E) Temporary Assistance for Needy Families payments.

To receive the federal EITC, you must file a federal tax return and fill out the EITC form, which can be found in the Federal Income Tax Return Booklet. For more information on your eligibility to receive the federal EITC and other federal antipoverty tax credits, visit the IRS (irs.gov).

California Earned Income Tax Credit (California EITC) and Young Child Tax Credit (YCTC) – The California EITC and YCTC are refundable credits for low-income working individuals and families. The California EITC and YCTC are similar to the federal EITC and will not impact certain public assistance benefits.

Foster Youth Tax Credit (FYTC) – The FYTC is a refundable credit for former and current foster youth between 18 and 25 years of age who were in foster care while 13 years of age or older. The FYTC will not impact certain public assistance benefits.

To claim the California EITC, you must file a California Income Tax Return and fill out the California EITC form (Form FTB 3514) and attach it to your tax return. For more information on the availability of the credit, including eligibility requirements, or form questions, visit the Franchise Tax Board (ftb.ca.gov/) and enter “CalEITC” in the search box.

You may also be eligible to have both your federal and state tax returns prepared and filed for free using VITA services. For more information on the free tax filing service, and location and hours of operation, visit the Franchise Tax Board (ftb.ca.gov/) and enter “VITA” in the search box.

Additionally, you may be eligible to e-file your California return directly with the Franchise Tax Board for free using CalFile. For more information on CalFile, visit the Franchise Tax Board (ftb.ca.gov/) and enter “CalFile” in the search box.” Refer to EITC Information for Employers for more information.

California Earned Income Tax Credit (Form 3514)

The refundable California EITC is available to low-income workers who earned wage income subject to California withholding or have self-employment income. This credit is like the federal Earned Income Credit but with different income limitations. To claim the California EITC, you must file a California income tax return and attach a completed California Earned Income Tax Credit (FTB 3514) form. For information on the credit and how to obtain the necessary tax forms, visit the Franchise Tax Board or call 1-800-852-5711.

Individuals, partnerships, corporations, or other organizations involved in a trade or business in California may need 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 the due date is on is a weekend or holiday), or you may have to pay a penalty.

For More Information

You can find IRS Form 1099 reporting requirements and instructions:

You can find more information on the relevant Tax Codes below:

e-Services for Business

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

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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.

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