California employers – don’t forget to provide your employees with notice of the State and federal Earned Income Tax Credit (EITC). This notice is required every year to be provided with employees’ annual wage summaries. Distributing Compliance Poster Company’s California Employee Tax Information/EITC Booklet to all employees brings you into compliance with California’s EITC notification law.
EITC Notice Deadlines
Each year, California employers are required to provide employees with a Federal Wage and Tax Statement (IRS Form W-2, 1099). The annual wage summary must be given to employees by January 31.
California law also requires employers to notify each of their employees that they may be eligible for the State and Federal EITC. Employers must give this notification within one week before or after, or at the same time, they provide employees with their annual wage summary. Employers must provide the EITC notification to employees by either handing it directly to each employee or mailing it to an employee’s last known address. Posting of this information on an employee bulletin board does not satisfy the notification requirement.
EITC Notice Content
The California Revenue and Taxation Code contains specific wording complying with the EITC notice requirement. Alternatively, an employer may create its own notice as long as it meets code requirements. In particular, the notice must contain instructions on how to obtain EITC notices from the Internal Revenue Service and the Franchise Tax Board, including, but not limited to, the annual IRS Notice 797 and information on the California EITC at the Web site www.ftb.ca.gov. In addition, the notice specified by the Code describes the general availability of the EITC credit, provides tax filing information, and informs employees that the credit is not used to determine eligibility of other low-income state and federal programs.
California Employee Tax Information Booklet
Compliance Poster Company’s (CPC) 2018 California Employee Tax Information Booklet includes all information required by the Code, including the prescribed text. The Booklet also contains the current IRS Notice 797 explaining Federal EITC eligibility, credit amounts, how to obtain tax preparation assistance, and where to find IRS forms and other IRS publications. The Booklet also contains IRS Pub. 4718 describing EITC income levels and other refundable credits. It also explains EITC qualifying child rules and tie-breaker rules that apply when a child qualifies for more than one taxpayer.
Distributing the California Employee Tax Information Booklet to all employees ensures you are in compliance with EITC notice requirements. The CPC Employee Tax Information Booklet is available in 10-packs. Don’t miss the important notice distribution deadline – order today!