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California Employers Issuing W-2 or 1099 Must Revise Earned Income Tax Credit Notice

  • December 12, 2016

For several years, California employers have been required to notify employees regarding the federal Earned Income Tax Credit. Beginning January 1, 2017, new California law (AB 1847) requires those same employers to also notify employees that they may be eligible for the California Earned Income Tax Credit (“EITC”).

The new law states that an employer must notify all employees that they may be eligible for the federal and the California EITC within one week (before or after) or at the same time that the employer provides an annual wage summary, including, but not limited to, a Form W-2 or a Form 1099, to any employee.

California employers should consider using the language on the availability of the federal and the California EITC specified in the new law in their notice to employees.

If you have any questions about this other workplace developments, please contact Jackson Lewis.

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